Maximizing Profit Using Second-Order Differential Equations in Production Functions

Abstract

Profit maximization is a traditional concept in economics and a basic principle of the economic theory of corporate finance. The role of second-order differential equations in the optimization of the production function: a iu. These equations allow us to quantitatively study how inputs (such as labor and capital) relate to total output. Resourcelevel studies identify points at which resource allocation is optimal, ensuring maximum profit. Using quadratic production functions as a mathematical model, this paper shows that decision making in an economic system is based on theoretical modeling using differential equations. The case of corresponding production functions and its impact on profit maximization are also studied. The results demonstrate the real-world application of advanced mathematical methods in economic optimization. CZU: 330.4:338.3+658.155; JEL: C61, D24