Determine the maximize profit.

Firms often face the problem of allocating an input in fixed supply among different products. Find Show more Firms often face the problem of allocating an input in fixed supply among different products. Find the optimal crude oil allocation for the following example if the profit associated with square foot of fiber is cut to $0.375 while the profit associated with per gallon of gasoline stayed at $0.50. a. What is gasoline marginal profit given gasoline production function of QG = 72MG 1.5 MG2 b. What is fiber marginal profit given fiber production function of QF = 80MF 2MF2 c. Determine the maximize profit. d. Determine total input availability. Hint: To maximize the profit by figuring out the optimal allocation of resources we need to find the point where marginal profits per unit of input for each product are identical i.e. M?G = M?F Please do not copy and paste from anywhere else I have already seen many other solutions and they are hard to understand and some in paragraph form. I will also be submitting to turn it in so this cant be copied from anywhere else. Please have the answers clearly laid out with the problem so I know which answer goes where. Thanks Show less

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