Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a) A manufacture of truck producer you need 4 truck tires (x) for 1 frame (y). The demand function for t is X=126 - 0.5Px

a) A manufacture of truck producer you need 4 truck tires (x) for 1 frame (y). The demand function

for t is X=126 - 0.5Px and the demand function for f is y=120 -2/3py. The total cost of the firm is:

TC=2x^2 + 2xy + 2y^2 + 380 . Use the Lagrange Multiplier method of constrained optimization optimize the profit, and find all the optimal values.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Real Estate Principles A Value Approach

Authors: David C Ling, Wayne Archer

5th edition

77836367, 978-0077836368

More Books

Students also viewed these Economics questions

Question

Outline three of Vivess contributions to psychological thought.

Answered: 1 week ago