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2. A firm is a perfectly competitive producer and sells good A and good B at RM100 and RM80, respectively. The total cost of producing these goods is given by TC = 2Q% + 2QAQB + Qb, where Qa and QB denote the output level of good A and good B, respectively. i) Find the firm's total profit function. ii) Calculate the values of Qa and QB which maximize profit. iii) Using the second order condition (SOC), prove that the profit level is at a maximum.

2. A firm is a perfectly competitive producer and sells good A and good B at RM100 and RM80, respectively. The total cost of producing these goods is given by TC = 2Q% + 2QAQB + Qb, where Qa and QB denote the output level of good A and good B, respectively. i) Find the firm's total profit function. ii) Calculate the values of Qa and QB which maximize profit. iii) Using the second order condition (SOC), prove that the profit level is at a maximum.

Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
Problem 6EQ: Redo Exercise 5, assuming that the house blend contains 300 grams of Colombian beans, 50 grams of...
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2. A firm is a perfectly competitive producer and sells good A and good B at RM100 and RM80, respectively. The total cost of producing these goods is given by TC = 2Q% + 2QAQB + Q%, where QA and QB denote the output level of good A and good B, respectively. i) Find the firm's total profit function. ii) Calculate the values of Qa and QB which maximize profit. iii) Using the second order condition (SOC), prove that the profit level is at a maximum.
Transcribed Image Text:2. A firm is a perfectly competitive producer and sells good A and good B at RM100 and RM80, respectively. The total cost of producing these goods is given by TC = 2Q% + 2QAQB + Q%, where QA and QB denote the output level of good A and good B, respectively. i) Find the firm's total profit function. ii) Calculate the values of Qa and QB which maximize profit. iii) Using the second order condition (SOC), prove that the profit level is at a maximum.
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