Q1) Sales are a function of advertising in newspapers and magazines (X, Y).

S = XY²

Price of advertising in newspapers and magazines are Rs.5 and Rs.10 respectively. The total budget for advertising is Rs.105. For maximizing the sales, find out the best combination of advertisement in newspapers and magazines by using lagrangian multiplier. (Hint: Make equation of budget line with the help of above information).

Q2) Consider the following production function

TP_L = 12L² - 0.8L³

i)Determine the marginal product function(MP_L)

ii)Determine the average product function (AP_L)

iii)Find the value of L that maximizes TP_L

iv)Find the value of L that maximizes AP_L

v)Find the value of L that maximizes MP_L