Suppose that , firm under perfectly competition market produce two commodities X1 and X2 with corresponding prices birr 10 and birr 15 . If cost function of the firm is C= 2×12 +x1x2+2×22 where x1 and x2 denote the level of output, then, determine the following questions. i. Profit maximizing level of output x1 and x2

/in /by

Suppose that , firm under perfectly competition market produce two
commodities X1 and X2 with corresponding prices birr 10 and birr 15 .
If cost function of the firm is

C= 2×12 +x1x2+2×22 where x1 and x2 denote the level of output, then,
determine the following questions.

i. Profit maximizing level of output x1 and x2

You might also like
State whether the Statement is TRUE or FALSE. Also write the reason (Without reason your answer will not accepted) a) If value of cross price elasticity is positive then it means there are less close substitutes are available of that product. b) In case of luxury products, the own price elasticity of demand is greater than one. c) If salaries of journalist go up then demand curve of newspaper will shift upward. d) When price elasticity of supply is greater than one it means supply curve is flatter.
The free rider problem refers tothe temptation of individual to let others provide the public goods. With relevant example show that purely individualistic mechanisms will not generate the optimal amount of public good because of the free rider problem.
What are the special properties of the Cobb-Douglas production function, and how might the function be used to calculate the sources of growth?
WHAT IS THE PRICE ELASTICITY OF DEMAND WHEN THE PRICE CHANGES FROM R4 PER ICE CREAM CONE TO R5 PER ICE CREAM CONE? (USE THE FORMULA FOR ARC ELASTICITY
What are the features of a Monopolistic Competition
Mehnaz, Inc., just constructed a manufacturing plant in Dhaka, Bangladesh. The construction cost is Tk. 1,000,000. Mehnaz intends to operate the plant for three years. During the three years of operation, cash flows are expected to be 400,000 Tk., 400,000 Tk., and 400,000 Tk., respectively. Operating cash flows will begin one year from today and all cash flows are remitted back to the parent at the end of each year as the government of BD will allow to remit fund during the term of project. Withholding tax imposed by BD government is 15% on remitted amount. At the end of the third year, Mehnaz expects to sell the plant for 300,000 Tk. Mehnaz has a required rate of return of 15 percent. It currently takes 90 Tk. to buy 1 U.S. dollar, and the Tk. is expected to depreciate by 5 Tk. at the end of first year.
The free rider problem refers to the temptation of individuals to let others provide the public goods , with relevant example show that purely individualistic mechanisms will not generate the optimal amount of a public good because of the free rider problem
As a prospective share holder, you are offered a project that will pay you an income of #8000 in 5years time at 13% rate of discount. What is the present value your future dividend.