thatguy634 thatguy634

06-06-2023
Business

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Assume that the cost of producing goods x and y is characterized by the following function C(x,y)=1000+0,08x 2
+0,02xy+0,02y 2
+8x+4y The good x can be sold at the price of 30kr per unit, and y at the price of 9kr per unit. Profit is defined as income (sales) minus costs. Calculate the profit maximizing levels of the production of the two goods. Assume that second order conditions are satisfied and show your calculations.

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