Business Maths - Urgent Help needed Watch

YahMedia
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#1
Report Thread starter 4 years ago
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NEED HELP WITH Q 1b Please:


Q1)

A firm, selling two goods, X and Y, has a revenue function.

TR = 20xy - 10x^2 - 50y^2 + 800Y

a) Determine the number of units of each good, which should be sold to maximize revenue. Use second-order derivatives to confirm that the values obtained are indeed at a maximum (6)

The Answer i got was x= 10 y = 10

which led to TR = 4000

and the maximum being 1600

b) Good X sells for £2 per unit, good Y sells for £4, write down the equation of the constraint which requires the value of sales to be £44.5.

Hence determine the number of units of each good, which should be sold to maximize revenue subject to the constraint. (6)

Px =2 Py = 4 Value of Sales = 44.5

I HAVE NO IDEA HOW TO DO THIS, CAN ANYONE HELP?

THANKS, MUCH APPRECIATED.
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ghostwalker
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#2
Report 4 years ago
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(Original post by YahMedia)

I HAVE NO IDEA HOW TO DO THIS, CAN ANYONE HELP?

THANKS, MUCH APPRECIATED.
I presume you can write down the constraint, then use the method of Lagrange Multipliers.
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