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Q. Industries often face the problem of allocating an input in fixed supply among different products. Find out the optimal crude oil allocation in the proceeding example if the profit associated with fibre were cut in half, which is; fell to $0.375 per square foot.
1) Given Gasoline production function of QG = 72MG 1.5 MG2, illustrate what is gasoline marginal profit?
2) Given fibre production function of QF = 80MF 2MF2, illustrate what is fibre marginal profit?
3) Describe the Maximize profit.
4) Describe Total input availability.
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