ExerciseAssume the yield of maize and wheat are given below with its sellingprice of birr 7 and 10 per quintal respectively. If only 10 units ofinputs with a Price of 40 Birr per unit were used. Then:1.A.What is the profit maximizing combination of output ?В.what is the maximum profit?of Yieldwheat (Y2)of Return from Return fromTRYieldTCProfitMaize (Y1)maizewheat78780780400 380107670760830400 4302072140720860400 46030672106708804004804060280600880400 4805048350480830400 4306028420280700400 3007049049040090

The firm produces the goods and services which are sold at a particular price. The firm produces…

Answered: A. What is the profit maximizing…

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Economics

A. What is the profit maximizing combination of output ? В. what is the maximum profit?

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter11: The Firm: Production And Costs

Section: Chapter Questions

Problem 21P

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Question

Exercise
Assume the yield of maize and wheat are given below with its selling
price of birr 7 and 10 per quintal respectively. If only 10 units of
inputs with a Price of 40 Birr per unit were used. Then:
1.
A.
What is the profit maximizing combination of output ?
В.
what is the maximum profit?
of Yield
wheat (Y2)
of Return from Return from
TR
Yield
TC
Profit
Maize (Y1)
maize
wheat
78
780
780
400 380
10
76
70
760
830
400 430
20
72
140
720
860
400 460
30
67
210
670
880
400
480
40
60
280
600
880
400 480
50
48
350
480
830
400 430
60
28
420
280
700
400 300
70
490
490
400
90

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