Bonus Question 4 ( A firm makes three products, in quantities X, Y and Z. It wishes to maximize its profit function: x-8X+ 16Y+4Z-0.8X2-0.8Y2-2² i) However, in order to satisfy customer orders, it must produce a total of 24 items which are either product X or product Y. Show how many of each of its three products it should produce and find the profit it makes.

Bonus Question 4 ( A firm makes three products, in quantities X, Y and Z. It wishes to maximize its profit function: x-8X+ 16Y+4Z-0.8X2-0.8Y2-2² i) However, in order to satisfy customer orders, it must produce a total of 24 items which are either product X or product Y. Show how many of each of its three products it should produce and find the profit it makes.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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