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Now it's your turn! Create your own business and solve its profit maximization problem using any method you like. In your response, you must Provide
Now it's your turn! Create your own business and solve its profit maximization problem using any method you like. In your response, you must
- Provide the name of your business, the product sold(a single product), and the list of inputs used in the production process(two inputs).
- Briefly describe how your firm uses inputs,x1and x2, to produce output,y(1-2 sentences).
- Does your firm use fixed proportions, perfect substitutes, or Cobb-Douglas technology? Write the technology functions of your business
- Write the input prices,w1and w2, and output pricepfaced by your firm?
- What is the long-run profit-maximizing production plan(x1*, x2*, y*)for your business?
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