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

Production possibility frontier, Halala is a small country that uses most o...

Halala is a small country that uses most of Its resources to produce fruits and vegetables. If the country produces only fruits it is able to produce 8000kg of fruit per year. If i

Company, what the company do?

what the company do?

Critique of economic reforms, CRITIQUE OF ECONOMIC REFORMS: The critiq...

CRITIQUE OF ECONOMIC REFORMS: The critique of economic reforms should consider the actual growth rate achieved, its impact on employment and poverty reduction, its impact on l

Land resources , Normal 0 false false false EN-IN X-N...

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

Schrodinger wave equation, The Schrodinger wave equation generalizes the fi...

The Schrodinger wave equation generalizes the fitting-in-of-waves procedure. The waves that "fit" into the region to which the particle is contained can be recognized "by inspect

Economies of scale, Economies of Scale The reduction in the cost of ea...

Economies of Scale The reduction in the cost of each additional unit produced as all factors of production increase. Factors contributing to economies of scale include discoun

Describe the price of monopolistic competition, Perfect competition and mon...

Perfect competition and monopoly are rarely found in the real world and thus they do not represent, for the most part, the actual market situations. Therefore, the conclusions whic

Elasticity, discuss how cross of demand is useful in categorizing commoditi...

discuss how cross of demand is useful in categorizing commodities

#proposed merger between heinz and beech-nut scrutinized, Who are the compe...

Who are the competitors in the jarred baby food market? What market share do they have? How do Heinz and Beech-Nut compete with one another? Are the barriers to entry high or low f

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