Consider the case of neoclassical production function : Y= 0.75X + 0.0042X^2 - 0.000023X^3
a. State down the corresponding profit function
b. State the profit maximizing condition
c. Assume P (price= P^o ) =RM4.00 and V^o (cost) is RM0.15. Rewrite the equation in part (2b)
d. Solve for X in 2(c)
e. Test for second order condition? Why do you need this condition?
f. Assume X = 180, what will be the value in part 2(e)? Explain and verify.