Profit maximization, Microeconomics

Assignment Help:

Profits University creates student credit hours (y) with two inputs: Professors' hours of work (x1) and TAs' hours of work (x2) according to the manufacture function: f(x1,x2)= 10x1.5x2.25. Both inputs are variable. Suppose professors are paid $80 per hour and TAs are paid $2.50 per hour. Profits receive $40 per credit hour.

 (Profit maximization, both inputs variable)

a)  What is the expression for profits as a function of prices and inputs?

b)  What is the expression for revenue? For marginal revenue products of every of the inputs?

c)  Calculate the two first order conditions for profit maximization. What do they mean?

d)  Calculate the inputs and outputs that will maximize Profit's profits. What is the maximum profit that Profits can make?

 


Related Discussions:- Profit maximization

Collateral constraint of a consumer, Suppose that there is a credit market ...

Suppose that there is a credit market imperfection because of limited commitment. As in the setup with collateralized wealth, each consumer has a component of wealth which has valu

Consumer surplus, Two consumers John and grayson like to transfer songs to ...

Two consumers John and grayson like to transfer songs to their phones from jose phone the table represents their willingness to pay and jose willingness to accept for each download

Impact of globalization on local states, I have an article about 40 pages l...

I have an article about 40 pages long that''s needs to be read and then a discussion question. The post has to be 35-40 lines. I will have to send/ attach the article

Money and banking., excess reserve make a bank less vulnerable to runs.why

excess reserve make a bank less vulnerable to runs.why

Market structures, implications of market structures on price determination...

implications of market structures on price determination

Political economy, #question.Now suppose nation A has RA resources in its t...

#question.Now suppose nation A has RA resources in its treasury and nation B has RB resources. The winning coalition in each nation is WA and WB respectively. Leaders want to survi

Change in the price of a related good, Change in the price of a related goo...

Change in the price of a related good: Goods relate to each other in two ways. Goods are either complements or substitutes. Complementary goods are goods with joint demand. The

Cost function, Costs: If raw materials, machines and other things require...

Costs: If raw materials, machines and other things required for production could be made available freely then the study of the theory of the production and indeed, the study of

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd