Answer to Question #111474 in Economics of Enterprise for adaner

Question

A firm has a production function:
Prices for the purchase of the respective K, L and R inputs are $ 30, $ 16 and $ 12 per unit. If the selling price of the product is $ 4 per unit, which is the maximum profit of the firm.(use hessian matrix)

Answer 1

Prices for the purchase of the respective K, L and R inputs

$ 30, $ 16 and $ 12 per unit.

If the selling price of the product is $ 4 per unit,