3. A monopolist sells two products x and y for which the demand functions are:x = 50 – Pxy = 36 – PyAnd the joint cost function is C = x² + xy + y2 + 120Find the profit maximizing level of (i) output, (ii) price, and (iii) profit for a monopolist with theabove demand functions.

We have been given that the demand function for product x and product y as x=50-Pxy=36-Py Monopolist…

3. A monopolist sells two products x and y for which the demand functions are: x = 50 – Px y = 36 – P, And the joint cost function is C = x² + xy+ y² + 120 Find the profit maximizing level of (i) output, (ii) price, and (iii) profit for a monopolist with the above demand functions.

3. A monopolist sells two products x and y for which the demand functions are: x = 50 – Px y = 36 – P, And the joint cost function is C = x² + xy+ y² + 120 Find the profit maximizing level of (i) output, (ii) price, and (iii) profit for a monopolist with the above demand functions.

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter9: Monopoly

Section: Chapter Questions

Problem 7SQP

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Question

3. A monopolist sells two products x and y for which the demand functions are:
x = 50 – Px
y = 36 – Py
And the joint cost function is C = x² + xy + y2 + 120
Find the profit maximizing level of (i) output, (ii) price, and (iii) profit for a monopolist with the
above demand functions.

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