Homework answers / question archive / The profit function of a business firm producing only two products (A and B) are as follows: a = f(x,y) = 12x – 2x² + 18y – 2y2 – xy Here, x represents amount of product A and y represents amount of product B

The profit function of a business firm producing only two products (A and B) are as follows: a = f(x,y) = 12x – 2x² + 18y – 2y2 – xy Here, x represents amount of product A and y represents amount of product B

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The profit function of a business firm producing only two products (A and B) are as follows: a = f(x,y) = 12x – 2x² + 18y – 2y2 – xy Here, x represents amount of product A and y represents amount of product B. a) What is the amount of product A and B that the business should produce to maximize the profit? b) What is the maximum profit that this business firm can generate? Question 5: (1 + 10 = 11 marks) A business firm producing only two products (A and B) is under a contract to produce 35 units for a client. The total cost function of the business firm is as follows: C = f(x,y) = 5x2 + 15y2 Here, x represents amount of product A and y represents amount of product B. a) What should be the aim of the business firm in the given situation? Explain the logic behind your answer. b) How can the business firm achieve the aim you stated above? Show the steps in your calculation.