Explore BrainMass

# Profit Maximization

Not what you're looking for? Search our solutions OR ask your own Custom question.

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Assume a production function:

Q=10L^0.5 K^0.25

with a selling price for the product of 10, and factor prices of 5 for and 10 for , determine the firm's profit maximizing levels of inputs. Ensure you have found a maximum by checking the second-order sufficient conditions. Determine the level of output that this will produce. Determine the corresponding values for total cost, total revenue and profit.

no budget line included

https://brainmass.com/economics/factors-of-production/profit-maximization-production-functions-180973

#### Solution Preview

Assume a production function:

,

with a selling price for the product of 10, and factor prices of 5 for and 10 for , determine the firm's profit maximizing levels of inputs. Ensure you have found a maximum by checking ...

#### Solution Summary

The solution answers the question(s) below. The expert examines profit maximization production functions.

\$2.49