Problem 2 Two kinds of fertilizer are used in the production of sugar during the plantation days in Hawaii.
The first fertilizer is X1 and the production function is
Y = 61.95+24.1X1-15.4X1^2
The second fertilizer is organic manure and the production function is
Y = 31.68+164.34X2-10X2^2
The price of X1 is $2/bag (PX1 = 2) and the price of X2 is one dollar per bg (Px2=1)
The production manager budgeted 20 per acre of sugar.
Questions 4. how many bags of X1 fertilizer must be used
5. how many bags of X2 fertilizer must be used
6. what is the maximum profit
4. When Y = 20 the production function for is
Solving for we get = 2.61 (positive value).
Thus in order to produce 20 ...
Maximum profit is displayed.