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A firm uses inputs x, and X2 to produce y where y = 4x1 x2 . The price of good y is $100 in the
A firm uses inputs x, and X2 to produce y where y = 4x1 x2 . The price of good y is $100 in the market. The input costs are $50 per unit of x, and $10 per unit of X2. If x2 = 4 in the short run, what is the firm's profit in terms of x, ? (1 pt) What is x], the level of the variable input that maximizes profit? (1 pt) When using x1, what is the firm's average total cost and profit? (2 pts) If x2=2 what would be the firm's profit? (2 pts)
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