Question: 5.2 A local manufacturer has a long-run production function y = f(x1,x2) = 10x925x9.5 where x, and x, stand for the labour and capital quantities

5.2 A local manufacturer has a long-run production function y = f(x1,x2) = 10x925x9.5 where x, and x, stand for the labour and capital quantities respectively. Suppose the unit labour and capital costs are w, = R5 and w2 = R4, respectively. The firm plans to spend a total of R60 on these inputs. Solve for the quantities of x, and x, that will maximise production by means of the Lagrangian multiplier method. Show all calculations

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