10x1/3x/. The market 2. (25 pts) Assume that the company production function is given by y...
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10x1/3x/. The market 2. (25 pts) Assume that the company production function is given by y = 10x1x2 price (p) for output y is $30. The company uses only two inputs to produce y, input x has a market price v = $25 and input x has a market price v = $100. a. (1pts) Set up the profit equation. b. (10pts) Find the input level of x and x that maximizes profit c. (4pts) How much is the company producing when maximizing profit? d. (2pts) What is the company's profit? e. (10pts) Is this really the maximum profit? (hint: SOC). 10x1/3x/. The market 2. (25 pts) Assume that the company production function is given by y = 10x1x2 price (p) for output y is $30. The company uses only two inputs to produce y, input x has a market price v = $25 and input x has a market price v = $100. a. (1pts) Set up the profit equation. b. (10pts) Find the input level of x and x that maximizes profit c. (4pts) How much is the company producing when maximizing profit? d. (2pts) What is the company's profit? e. (10pts) Is this really the maximum profit? (hint: SOC).
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a The profit equation can be set up as follows text Profit text Total Revenue text Total Cost text T... View the full answer
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
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