What combination of a and b it produce to maximize profit


Problem

A firm makes two goods A and B using the three inputs X, Y and Z in the following quantities:

20 units of X, 8 units of Y and 20 units of Z per unit of A

20 units of X, 20 units of Y and 14 units of Z per unit of B

The per-unit profit of A is £1,500, and for B the figure is £1,000. Input availability is restricted to 60 units of X, 40 units of Y and 70 units of Z. The firm has already committed itself to a contract to supply one customer with 1 unit of B. What combination of A and B should it produce to maximize total profit?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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Microeconomics: What combination of a and b it produce to maximize profit
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