By selling x tons of the first commodity the firm gets a price per ton given by Px=96-4x By selling y tons of the other commodity the price per ton is given by Py=84-2y The total cost of producing and selling x tons of the first commodity and y tons of the second is given by C(x,y)=2x2+2xy+y2 Suppose that the firm’s production activity causes so much pollution that the authorities limit its output to 11 tons in total. That is x + y = 11. What is the optimal amount of y?
By selling x tons of the first commodity the firm gets a price per ton given by Px=96-4x By selling y tons of the other commodity the price per ton is given by Py=84-2y The total cost of producing and selling x tons of the first commodity and y tons of the second is given by C(x,y)=2x2+2xy+y2 Suppose that the firm’s production activity causes so much pollution that the authorities limit its output to 11 tons in total. That is x + y = 11. What is the optimal amount of y?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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By selling x tons of the first commodity the firm gets a price per ton given by Px=96-4x
By selling y tons of the other commodity the price per ton is given by Py=84-2y
The total cost of producing and selling x tons of the first commodity and y tons of the second is given by C(x,y)=2x2+2xy+y2
Suppose that the firm’s production activity causes so much pollution that the authorities limit its output to 11 tons in total. That is x + y = 11.
What is the optimal amount of y?
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