3. a. A firm produces two different kinds A and B of a commodity. The daily cost of producing a units of A and y units of B is C(x, y) = 0.04x² +0.01xy +0.01y² + 4x +2y + 500 A sells for $15 per unit and B sells for $9 per unit. Find the daily production levels of x and y that maximize profit per day b.A firm's production function is given by F(K,L) = KL. Each unit of K costs $1.2 and each unit of L costs $0.6. Each unit of output sells at $12. Find the optimal level of K and L that maximize profit.

3. a. A firm produces two different kinds A and B of a commodity. The daily cost of producing a units of A and y units of B is C(x, y) = 0.04x² +0.01xy +0.01y² + 4x +2y + 500 A sells for $15 per unit and B sells for $9 per unit. Find the daily production levels of x and y that maximize profit per day b.A firm's production function is given by F(K,L) = KL. Each unit of K costs $1.2 and each unit of L costs $0.6. Each unit of output sells at $12. Find the optimal level of K and L that maximize profit.

Linear Algebra: A Modern Introduction

4th Edition

ISBN:9781285463247

Author:David Poole

Publisher:David Poole

Chapter2: Systems Of Linear Equations

Section2.4: Applications

Problem 23EQ: 23. Consider a simple economy with just two industries: farming and manufacturing. Farming consumes...

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