Posted by **Elizabeth** on Monday, January 18, 2010 at 3:28pm.

A firm produces two different kinds A and B of a commodity. The daily cost of producing x units of A and y units of B is

C(x,y) = 0.04x2 + 0.01xy + 0.01y2 +4x + 2y +500

Suppose that firm sells all its output at a price per unit of 15 for A and 9 for B.

Find the daily production levels x and y that maximise profit per day.

Suppose that any production by the firm creates pollution, so it is legally restricted to produce a total of 320 units of the two kinds of output. What now are the optimal quantities of the two kinds of output?

## Answer this Question

## Related Questions

- economic theory - assume that a business firm produces two commod ities, X and Y...
- math - The daily cost C, in RM, of producing a product is C(x)=1000+72x-0.06x^2...
- ECOMICS - IF AN ECONOMY MOVES FROM PRODUCING 15 UNITS OF A AND 7 UNITS OF B TO ...
- economics - A profit-maximizing firm in a competitive market is currently ...
- Economy - What is the cost of producing 100 units of output for a firm with a ...
- Economics/Math - In a perfectly competitive industry, the market price is $25. A...
- Business Calculus - A manufacturer has found that marginal cost is dc/dx=3x^2-...
- eco - suppose that the marginal product of the last worker employed by a firm is...
- Economics - In an economy where a unit of labour can produce either 1 unit of x ...
- Economy - Consider a competitive firm with a total cost function given by TC(q)=...