1.1. What is the set of profit-maximizing inputs if the profit function of a firm is given by:
π(X, Y) = P ln[X + aY] – wX – wY
where
P - price of output
f(X,Y) = ln[X + 0.5Y] - production function
X - input 1, X>=0
Y - input 2, Y>=0
w - same price of input for inputs 1 and 2
a - parameter between 0 and 1
1.2 What is the set of profit-maximizing inputs if the profit function of a firm is given by:
π(X, Y) = 20 ln[X + .5Y] – 2X – 2Y
X - input 1, X>=0
Y - input 2, Y>=0
1.1. What is the set of profit-maximizing inputs if the profit function of a firm is...
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