Consider the case of neoclassical production function

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Reference no: EM131392227

Consider the case of neoclassical production function : Y= 0.75X + 0.0042X^2 - 0.000023X^3

a. State down the corresponding profit function

b. State the profit maximizing condition

c. Assume P (price= P^o ) =RM4.00 and V^o (cost) is RM0.15. Rewrite the equation in part (2b)

d. Solve for X in 2(c)

e. Test for second order condition? Why do you need this condition?

f. Assume X = 180, what will be the value in part 2(e)? Explain and verify.

Reference no: EM131392227

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