Question-1 (Profit maximization) ( 1/2 1/3 A firm has two variable factors and a production function f(x1,2)=61 2. The price of its output is 3, the price of factor 1 is 3, and the price of factor 2 is 2. - What is the optimal production output level? What is the maximum profit-level?
Question-1 (Profit maximization) ( 1/2 1/3 A firm has two variable factors and a production function f(x1,2)=61 2. The price of its output is 3, the price of factor 1 is 3, and the price of factor 2 is 2. - What is the optimal production output level? What is the maximum profit-level?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Question-1 (Profit maximization)
A firm has two variable factors and a production
function f(x1,2) = 6x1223. The price of its output is 3, the price of factor 1 is 3, and the price
of factor 2 is 2.
What is the optimal production output level?
-
What is the maximum profit-level?
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