6. A two-product firm face the following demand and cost functions Q₁ = 40 - 2P₁ P₂ ; Q₂ = 35 - P₁ - P₂; C= Q² +2Q² + 10 (a) Find the output levels that satisfy the first-order conditions for maximum profit (Hint: maintain fractions) (b) Is the second-order sufficient condition satisfied? (c) What is the maximum profit?

6. A two-product firm face the following demand and cost functions Q₁ = 40 - 2P₁ P₂ ; Q₂ = 35 - P₁ - P₂; C= Q² +2Q² + 10 (a) Find the output levels that satisfy the first-order conditions for maximum profit (Hint: maintain fractions) (b) Is the second-order sufficient condition satisfied? (c) What is the maximum profit?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter2: Mathematics For Microeconomics

Section: Chapter Questions

Problem 2.2P

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