For the following total profit function of a firm, where X and Y are two goods...
For the following total profit function of a firm, where X and Y are two goods sold by the firm:
Profit = 170X – 5X2 –XY -4Y2 +175Y -225
Do problem with a constraint of X + Y =30.
- To work problem 5 use the constraint equation to find an equation for X in terms of Y (X = 30 – Y) or an equation for Y in terms of X.
- Substitute the equation into the total profit equation at every place you find X (or Y)
- Set the derivative equal to zero and solve for X (or Y)
- Plug the result from part c into the constraint equation to get the other variable.
- Calculate the total profit.
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For the following total profit function of a firm, where X and Y
are two goods...
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