Question

QUESTION 11

Consider version I of the profit maximisation problem found in Additional_Information_for_Problem_Solving_Exercise.pdf With the technology in place, given output and input prices and fixed input factor x_2, the maximum profit level that can be achieved is: (Instruction: Type in the value in the cell below using two decimal places. Do NOT use alphabetical characters, symbols such as $ or commas as thousand separators. Example: “1000.00” is a valid entry, but “Profit=$1,000.000” is not a valid numerical entry.)

Information for Question 11 Version 1 Maxx, T = py - W1X1 - W272 subject to y = f(x1, x2) = 4x]?????? p = 16, W1 = 2, W2 = 1, X2 = 1 Version II Maxx, n = py – W1X1 - W2x2 subject to y = f(x1, x)) = 6x1/32/3 p = 576, W1 = 32,W2 = 1, X2 = 1 Version III Maxx, = py – W1X1 – wzł2 subject to y = f (x1,x2) = 2x]/332/3 p = 34,w1 = 4,w2 = 4, X2 = 1

Answer 1

Version 1 : Max. TT= py-w -w22 subject to y ={(,)=42, 2x Ym substituting odure I be and other given welees To = p (4 x 22 ) - wx, wat T = 16 (4x n ) 2x -11 17 maximing I with respect to a TA = 14147}(Minaro, * = * => x=(15)? so profit in T = 16 14 (112)*(1)] -2(16)²-(1) = $1511 Profita $15117