A factory produces product A according to the production function QA = 100XA, where XA denotes the amount of input and Qa is the quantity produced. It also produces product B according to the production function QB = 200XB - XB², where XB denotes the amount of input and QB is the quantity produced. The total available amount of input X is 100 units. The firm’s profit-maximizing allocation of input X is: a) XA = 60 and XB = 40. b) XA = 50 and XB = 50. c) XA = 0 and XB = 100. d) XA = 100 and XB = 0. %3D |3D

A factory produces product A according to the production function QA = 100XA, where XA denotes the amount of input and Qa is the quantity produced. It also produces product B according to the production function QB = 200XB - XB², where XB denotes the amount of input and QB is the quantity produced. The total available amount of input X is 100 units. The firm’s profit-maximizing allocation of input X is: a) XA = 60 and XB = 40. b) XA = 50 and XB = 50. c) XA = 0 and XB = 100. d) XA = 100 and XB = 0. %3D |3D

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter16: Labor Markets

Section: Chapter Questions

Problem 16.7P

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Question

Pick the correct answer and explain in steps

A factory produces product A according to the production function QA = 100XA, where XA
denotes the amount of input and Qa is the quantity produced. It also produces product B
according to the production function QB = 200XB - XB², where XB denotes the amount of
input and QB is the quantity produced. The total available amount of input X is 100 units.
The firm's profit-maximizing allocation of input X is:
а) ХА 3 60 and Хв %3D 40.
b) XẠ = 50 and XB = 50.
c) XA = 0 and XB = 100.
d) ХА 3D 100 and Xв 3D 0.
e) XA = 30 and XB = 70.
%3D
%3D

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