1. A company's production process is such that 2 units of output (Y) are produced for each 1 unit of input (X), and you start out with 1 unit of output before using any amount of input. Also, the price of the output is $10/unit and the input is $5/unit.
2. What is the mathematical expression for the production function?
3. What is the profit function?
4. Without any more information, if I asked you for the profit-maximizing level of production do you see any problem in determining this value?
5. If the production function is do you still have the same problem?