Given a firm which uses 2 inputs, X1 and X2; to produce a good that is described by the production function: Q = f (X1 X2) = X11/2 X21/4 The firm sells its ouput at N$80 per units. Given cost of input 1, X1; is N$4; and the cost of input 2, X2; is N$2 Solve for the profit maximizing input mix, output, and profit.

Given a firm which uses 2 inputs, X1 and X2; to produce a good that is described by the production function: Q = f (X1 X2) = X11/2 X21/4 The firm sells its ouput at N$80 per units. Given cost of input 1, X1; is N$4; and the cost of input 2, X2; is N$2 Solve for the profit maximizing input mix, output, and profit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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