13. a) Pine Hill Dairy sells milk packs at different prices in Barbados (at price p) and in Antigua and Barbuda (at price q). The price of a pack of milk in Barbados is: p = 20 and in Antigua and Barbuda the price is: q = 30. Pine Hill's joint cost function for producing the milk is: C(x, y) = 2x² - 4xy + 3y². (i). (ii). (iii). Find the number of milk packs Pine Hill should sell in Barbados and Antigua and Barbuda to maximize profit. 1 The government restricted the company to a total production of 26 per day due to its environmental impact. Find the number of milk packs Pine Hill should sell in each country to maximize profit subject to this government constraint. 1 Comment on the effect of government's restriction on the production levels.

13. a) Pine Hill Dairy sells milk packs at different prices in Barbados (at price p) and in Antigua and Barbuda (at price q). The price of a pack of milk in Barbados is: p = 20 and in Antigua and Barbuda the price is: q = 30. Pine Hill's joint cost function for producing the milk is: C(x, y) = 2x² - 4xy + 3y². (i). (ii). (iii). Find the number of milk packs Pine Hill should sell in Barbados and Antigua and Barbuda to maximize profit. 1 The government restricted the company to a total production of 26 per day due to its environmental impact. Find the number of milk packs Pine Hill should sell in each country to maximize profit subject to this government constraint. 1 Comment on the effect of government's restriction on the production levels.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.4P

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