A firm uses two inputs x and y, and their profit function is P(x,y)=3xy-2x+y. Input x...

 

Transcribed Image Text:

A firm uses two inputs x and y, and their profit function is P(x,y)=3xy-2x+y. Input x costs $2 each and y costs $1 each and they are constrained to spend a total of $100 on inputs. If the firm wants to maximise profit, they should use of input y. In addition, the shadow price will be Round your answer to two decimal places where necessary. of input x, A firm uses two inputs x and y, and their profit function is P(x,y)=3xy-2x+y. Input x costs $2 each and y costs $1 each and they are constrained to spend a total of $100 on inputs. If the firm wants to maximise profit, they should use of input y. In addition, the shadow price will be Round your answer to two decimal places where necessary. of input x,

Answer rating: 100% (QA)

To maximize profit the firm needs to determine the optimal combination of inputs x and y that will m... View the full answer