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Q. Firms often face the problem of allocating an input in fixed provide among different products. Find out the optimal crude oil allocation in the proceeding example if the profit associated with fiber were cut in half, that is, fell to $0.375 per square foot.
• Given Gasoline production function of QG = 72MG - 1.5 MG2, Illustrate what is gasoline marginal profit?
• Given fiber production function of QF = 80MF - 2MF2, Illustrate what is fiber marginal profit?
• Determine the Maximize profit.
• Determine Total input availability
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