Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Solve clearly Given these production functions and per unit input and output prices, and assuming fixed costs equal zero: a. Y = 36 + 81x1

Solve clearly

image text in transcribed
Given these production functions and per unit input and output prices, and assuming fixed costs equal zero: a. Y = 36 + 81x1 + 72x2 - 0.45x12 - 0.3x22 p = $2.00; V1 = $72; v2 = $90 D. Y = 36 + 81x1 + 72x2 - 0.45x12 - 0.3x22 + 0.1x1X2 p = $2.00; v1 = $72; v2 = $90 1. Calculate the profit-maximizing input levels and the profit-maximizing output level for each production function. (Show your work.) Check the second-order conditions to verify the critical values satisfy requirements for a maximum. Calculate profit

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial economics applications strategy and tactics

Authors: James r. mcguigan, R. Charles Moyer, frederick h. deb harris

12th Edition

9781133008071, 1439079234, 1133008070, 978-1439079232

Students also viewed these Economics questions

Question

What are your current research studies?

Answered: 1 week ago