b.A firm's production function is given by F(K, L) = K² L¹. Each unit of K costs $1.2 and each unit of L costs $0.6. Each unit of output sells at $12. Find the optimal level of K and L that maximize profit.
b.A firm's production function is given by F(K, L) = K² L¹. Each unit of K costs $1.2 and each unit of L costs $0.6. Each unit of output sells at $12. Find the optimal level of K and L that maximize profit.
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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please solve part b
Transcribed Image Text:-
3. a. A firm produces two different kinds A and B of a commodity. The daily cost of producing x units
of A and y units of B is C(x, y) 0.04x² +0.01xy +0.01y² + 4x + 2y + 500 A sells for $15 per unit
and B sells for $9 per unit. Find the daily production levels of x and y that maximize profit per day
b.A firm's production function is given by F(K, L) = K² L². Each unit of K costs $1.2 and each unit
of L costs $0.6. Each unit of output sells at $12. Find the optimal level of K and L that maximize
profit.
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can you show how you got 625 for k and L? and how did you get them at $375?
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