Business Maths - Urgent Help needed Watch
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.
- Study Helper