Question

The output production function of a firm and its cost function are given, respectively, by Q(x, y) = 7x² + 7y² + 6xy and C(x, y) = 4x³ + 4y³where x and y are the productive inputs. Knowing that the selling price of a unit of good is 3 ., find the maximum point for both productive inputs, x and y, to achieve the maximum profit.

	a	(10,5)
	b	(5,10)
	c	(10,10)
	d	(5,5)

Solve the output production maximizing problem max Q(x, y) = −x³ − 3y² + 3x² + 24y where x and y are the necessary inputs. Find the maximum production

	a.	52
	b.	50
	c.	48
	d.	20

Answer 1

Question 1

Answer is Option D (5,5)

Question 2

Answer is option A 52

dQ/dX = 0

dQ/dY = 0

-3×2+6x =0 That is x(6-3x)=0

X is necessary good, x not equals to zero since.

So, (6-3x) =0

That is x= 2.

Now y is-

-6y+24=0

Therefore y = 4.

Maximum production= -23-3×42+3×22+24×4

=> -8-48+12+96 = 52.

Thanks