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Function of advertising in newspapers and magazines

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Q1) Sales are a function of advertising in newspapers and magazines

(X, Y).

S = XY2

Price of advertising in newspapers and magazines are Rs.5 and Rs.10 respectively. The total budget for advertising is Rs.105. For maximizing the sales, find out the best combination of advertisement in newspapers and magazines by using lagrangian multiplier. (Hint: Make equation of budget line with the help of above information).

Q2) Consider the following production function

TPL = 12L2 - 0.8L3

i) Determine the marginal product function(MPL)

ii) Determine the average product function (APL)

iii) Find the value of L that maximizes TPL

iv) Find the value of L that maximizes APL

v) Find the value of L that maximizes MPL

Reference no: EM132631334

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