Consider these production functions: 1 Y = f(x1, x2) = 45 + 90x1 + 100x2 -1.5x1-2.5x...

 

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Consider these production functions: 1 Y = f(x1, x2) = 45 + 90x1 + 100x2 -1.5x1²-2.5x₂² 2 Y = f(x1, x2) = 45 + 90x1 + 100x2 -1.5x1²-2.5x₂² +0.5x1x2 Find the input levels that maximize output. Check the second order conditions to determine if your point is indeed a maximum. Find the yield maximum for each. Assuming an output price of $2 per unit and input prices, $90 per unit for x, and $60 per unit for x2, and Fixed Costs of $1,500, find the profit associated with producing at the yield maximum for each. Assuming an output price of $2 per unit and input prices, $90 per unit for x₁ and $60 per unit for x2, and Fixed Costs of $1,500, find the input levels that maximize profit. Check the second order conditions to determine if your point is indeed a maximum. Find the associated yield for each. Calculate the maximum profit for each. Consider these production functions: 1 Y = f(x1, x2) = 45 + 90x1 + 100x2 -1.5x1²-2.5x₂² 2 Y = f(x1, x2) = 45 + 90x1 + 100x2 -1.5x1²-2.5x₂² +0.5x1x2 Find the input levels that maximize output. Check the second order conditions to determine if your point is indeed a maximum. Find the yield maximum for each. Assuming an output price of $2 per unit and input prices, $90 per unit for x, and $60 per unit for x2, and Fixed Costs of $1,500, find the profit associated with producing at the yield maximum for each. Assuming an output price of $2 per unit and input prices, $90 per unit for x₁ and $60 per unit for x2, and Fixed Costs of $1,500, find the input levels that maximize profit. Check the second order conditions to determine if your point is indeed a maximum. Find the associated yield for each. Calculate the maximum profit for each.

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To find the input levels that maximize output we need to differentiate the production functions with ... View the full answer