a profit maximizing firm has a technology with the production function f(x1,x2) =x1^0.5 x2^0.5 can only use   4 units of x2 in the short run. what is the optimal amount of x1 to use in the short run if the price of x1 is $1 and price of output is $13 .how much output does the firm make ?

sketch 2 isoquants on same axis for production function f(x,y) = min (y,x^2)

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To find the optimal amount of x1 to use in the short run we need to maximize the firms profit based ... View the full answer