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 use 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?