ii.GivenU = 5x,0.7x,0.3s.t 100 = 5x1 + 10x2Find the equilibrium value of x1 & x2. also use the bordered hessian matrix to check second orderconditions.A two-product firm faces the demand and cost functions below:g1 3D 50 — Зр, — р2a. Find the output levels that satisfy the first-order condition for maximum profit.b. Check the second-order sufficient condition. Can you conclude that this problem possessa unique absolute maximum?c. What is maximal profit?iii.92 = 40 – P1 - 3p2c = qỉ + 2q3 + 10

Utility: Subject to budget constraint :

ii. Given U = 5x₁0.7x₂0. s. t 100 = = 5x₁ + 10x₂ Find the equilibrium value of x₁ & x₂. also use the bordered hessian matrix to check second order conditions. iii. A two-product firm faces the demand and cost functions below: 91 = 50-3p₁ - P2 92 = 40-P₁-3p2 c=q² + 2q² + 10 a. Find the output levels that satisfy the first-order condition for maximum profit. b. Check the second-order sufficient condition. Can you conclude that this problem possess a unique absolute maximum? c. What is maximal profit?

ii. Given U = 5x₁0.7x₂0. s. t 100 = = 5x₁ + 10x₂ Find the equilibrium value of x₁ & x₂. also use the bordered hessian matrix to check second order conditions. iii. A two-product firm faces the demand and cost functions below: 91 = 50-3p₁ - P2 92 = 40-P₁-3p2 c=q² + 2q² + 10 a. Find the output levels that satisfy the first-order condition for maximum profit. b. Check the second-order sufficient condition. Can you conclude that this problem possess a unique absolute maximum? c. What is maximal 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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