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Jenny produces and sells homemade desserts. To prepare these desserts, she needs to use two types of inputs: food ingredients (f) and utilities, i.e. electricity
Jenny produces and sells homemade desserts. To prepare these desserts, she needs to use two types of inputs: food ingredients (f) and utilities, i.e. electricity and water (u). Her weekly profits (f, u), measured in hundreds of $. can be expressed as a function of the usage level of these two inputs and is given by: i(f, u) = 3fu - 2fu? f2u where fand u are measured in units of hundreds. Calculate and interpret the possible types of stationary points of the total profit function
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