A firm has g(x,y) =40xy as its production function, with labor x costing $10 per hour...

 

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A firm has g(x,y) =40xy as its production function, with labor x costing $10 per hour and land y costing $3 per acre per month. If the firm has a total budget of $900 for labor and land, what amounts of these inputs should be used for maximum output? Using a bordered Hessian, prove that output q is really maximized. A firm has g(x,y) =40xy as its production function, with labor x costing $10 per hour and land y costing $3 per acre per month. If the firm has a total budget of $900 for labor and land, what amounts of these inputs should be used for maximum output? Using a bordered Hessian, prove that output q is really maximized.

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Finding the Optimal Input Mix for Maximum Output 1 Set up the optimization problem We want to maximi... View the full answer