Please answer the followin questions in picture. Cevap A competitive firm's production function is given by1/21/2y = f(x1, x2) = 4x,2+ 10x,2a) The price of factor 1 is 1, the price of factor 2 is 1, and the price of output is 2. Findthe profit-maximizing quantities of x1 and x2? What is the profit-maximizing quantityof output?b) Redo part (a), this time by first deriving the firm's factor demand functions and thesupply function, and then substituting the prices in these functions.

(a) Profit (π) = Total Revenue - Total CostTR = P x yTotal Cost (TC) is the cost of factor 1 (w1)…

A competitive firm's production function is given by y = f(x₁, x₂) = 4x1¹/²+10x¹/2 a) The price of factor 1 is 1, the price of factor 2 is 1, and the price of output is 2. Find the profit-maximizing quantities of x₁ and x2? What is the profit-maximizing quantity of output? b) Redo part (a), this time by first deriving the firm's factor demand functions and the supply function, and then substituting the prices in these functions.

A competitive firm's production function is given by y = f(x₁, x₂) = 4x1¹/²+10x¹/2 a) The price of factor 1 is 1, the price of factor 2 is 1, and the price of output is 2. Find the profit-maximizing quantities of x₁ and x2? What is the profit-maximizing quantity of output? b) Redo part (a), this time by first deriving the firm's factor demand functions and the supply function, and then substituting the prices in these functions.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Please answer the followin questions in picture.

Cevap

A competitive firm's production function is given by
1/2
1/2
y = f(x1, x2) = 4x,2+ 10x,2
a) The price of factor 1 is 1, the price of factor 2 is 1, and the price of output is 2. Find
the profit-maximizing quantities of x1 and x2? What is the profit-maximizing quantity
of output?
b) Redo part (a), this time by first deriving the firm's factor demand functions and the
supply function, and then substituting the prices in these functions.

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