Question 2

Question 2 The production of Soma requires two inputs, called carisoprodol and alginic acid. If x units of carisoprodol are combined with y units of alginic acid, the total output of Soma is f(x, y) = 1/43/4. Suppose a unit of carisoprodol costs $1 and a unit of alginic acid costs $3. The demand for Soma as a function of its unit price p, is 100 - p. 1. Find the minimum cost combination of carisoprodol and alginic acid to produce q units of Soma. 2. What kind of returns to scale does the Soma production technology exhibit? 3. Suppose Soma is sold by a monopolist. What volume of Soma should it produce to maximize profit? 4. What combination of carisoprodol and alginic acid should be purchased to maximize profit