1.

A producer has 20 and 10 unit of labour and capital respectively which he can use to produce two kinds of goods X and Y. To produce one unit of x, 2 units of capital and 1 unit of labour is required. To produce one unit of Y,3 of labour and 1 unit of capital is required. If X and Y are priced at Rs. 80 and Rs. 100 per unit respectively, howshould the producer use his resources to maximise the total revenue?

Answer»


ANSWER :At 25 km/h he should TRAVEL 50/3, at 40 km/h 40/3 km. Maximum distance 30 km in 1 hr.


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