A firm is selling two goods, A and B, with a total profit function: TP=-16 + 598.8A- 0.3A^2 + 498.5B - 0.2B^2 -0.2AB
Find the values of A and B that will maximise profit. Prove that profit is a maximum.
A firm is selling two goods, A and B, with a total profit function: TP=-16 +...
Question 2. (a) Suppose there is a firm producing two goods. The profit function π is function of Q1 and Q2 Find Qi and Q2 to maximize total profit. Use the sccond-order conditions to verify that profits are maximized for these extreme values. What is the maximum of the profit π
For the following total profit function of a firm, where X and Y are two goods sold by the firm: Profit = 170X – 5X2 –XY -4Y2 +175Y -225 Do problem with a constraint of X + Y =30. To work problem 5 use the constraint equation to find an equation for X in terms of Y (X = 30 – Y) or an equation for Y in terms of X. Substitute the equation into the total profit equation at...
Find a maximum profit for a firm if its total revenue function is TR = 50Q ‒ Q2 and its total cost function is TC = 100 ‒ 4Q + 2Q2
5. To maximise profit, a firm should produce: A. where total revenue is the largest B. where marginal revenue is the highest C. at a quantity where zero profit is made for the last unit of the good produced D. All of the above.
у 1200- A firm has the marginal profit function below, where P(x) is the profit earned at x dollars per unit. dP 9000 - 3000x dx (x2 - 6x+ (+10) 2 600- 0- LY 6 8 -600- The graph of this function is shown to the right. Find the total-profit function given that P = $1500 at x = $3. -1200- How can the total-profit function be found? A. Substitute the given value of P into the marginal-profit function and...
27 Optimization of functions PL5. FAVOURITE agricultural firm makes profit from selling two products: cotton (X) and corn (V). Both products face the following inverse linear demand (where X is in tons of cotton and Y is in dozen bushels of corn): Px = 56 - 4X Py = 48 - 2Y The cost of providing these products is: C(X,Y)= XP + YP + 6XY. Set the profit function, find the combination x* and y* that maximizes profit and check...
A machine can make two products : A and B. the time taken to make A is Ta(hours) and that to make B is Tb(hours),the profit of a unit product B is pb.write the objective function to maximise the total profit based on a 24 hour schedule and the constraints to optimise the production quantities of A and B.
B. A firm produces and sells two commodities. By selling x tons of the first commodity the firm gets a price per ton given by p = 96 – 4x. By selling y tons of the other commodity the price per ton is given by q = 84 – 2y. The total cost of producing and selling x tons of the first commodity and y tons of the second is given by C(x, y) = 2x2 + 2xy + y2....
16. An industry has two firms. The cost function of Firm 1 is ci(q) 2q + 500, and the cost function of Firm 2 is cz(g) - 2q + 400. The demand function for the output of this industry is a downward-sloping straight line. In a Cournot equilibrium in which both firms produce positive amounts of output: a. Total output of both firms is less than the cartel (joint-profit maximizing) output b. Firm 1 and Firm 2 produce the same...
3. A firm produces two goods in pure competition and has the following total revenue and total cost function. TR(X1,X2) = 18x1 + 15x2 (a) Maximize profits for the firm, using matrix inversion to solve the first-order conditions. 13) Answer: 3 (. Refar to the fim in Question 3(0) use the Hessian to check the second conditions for profit maximization. 13] Answer: 3. A firm produces two goods in pure competition and has the following total revenue and total cost...