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The following is the production function of a farm in Maseno. y=x, +0.1x-0.05x+x+0.1x-0.05x a) Find the maximum output and the corresponding level of input
The following is the production function of a farm in Maseno. y=x, +0.1x-0.05x+x+0.1x-0.05x a) Find the maximum output and the corresponding level of input use at which output is maximized. (6 marks) b) Assume that price of the output is $2 per unit, what level of input use will maximize the total value of the product? (6 marks) c) The price of output increases to $3, the price of input x, is $5 and the price of input x is $4. is it possible to produce and achieve a profit? (8 marks)
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