Question

Producer production function is Y = 8X+2X²-4/3X³ Price of the product is 5 per unit and price of the input is 25 per unit. What is the level of output at the equilibrium level of production?

Answer 1

$$y'=8+4x-4x^2$$

$$-4x^2+4x+8=0$$

$$x=2$$

$$y(2)=16+8-\frac{32}{3}=13\frac{1}{3}$$