For the following total profit function of a firm, where X and Y are two goods sold by the firm:

Profit = 170X – 5X² –XY -4Y² +175Y -225

Do a problem with a constraint of X + Y =30.

2. Use the constraint equation to find an equation for X in terms of Y (X = 30 – Y) or an equation for Y in terms of X.
4. Substitute the equation into the total profit equation at every place you find X (or Y)
6. Set the derivative equal to zero and solve for X (or Y)
8. Plug the result from part c into the constraint equation to get the other variable.
10. Calculate the total profit.

Answer rating: 100% (QA)

To solve the problem with the given profit function and constraint lets follow the steps Step 1 Use ... View the full answer