8. A firm's total cost function is given byTC = 3Q +2Q,Q, +7Q;Where Q, and Q, denote the number of items of goods 1and 2, respectively that are produced. Using the substitutionmethod, find the values of Q, and Q, which minimize costsif the firm is committed to producing 40 goods of eithertype in total.9. A monopolistic producer of two goods, 1 and 2, has a jointtotal cost functionTC =10Q, +Q,Q, +10Q,where Q, and Q, denote the quantity of items of goods 1and 2, respectively that are produced. If Pi and P2 denotethe corresponding prices then the demand equations areP, = 50 – Q, +Q,P, = 30+2Q, - Q,Using the Lagrange multiplier approach, find the maximumprofit if the firm is contracted to produce a total of 15 goodsof either type. Estimate the new optimal profit if theproduction quota rises by 1 unit.

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8. A firm's total cost function is given by TC = 3Q +2Q,Q; +7Q; Where Q, and Q, denote the number of items of goods 1 %3D and 2, respectively that are produced. Using the substitution method, find the values of Q, and Q, which minimize costs if the firm is committed to producing 40 goods of either type in total.

8. A firm's total cost function is given by TC = 3Q +2Q,Q; +7Q; Where Q, and Q, denote the number of items of goods 1 %3D and 2, respectively that are produced. Using the substitution method, find the values of Q, and Q, which minimize costs if the firm is committed to producing 40 goods of either type in total.

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter14: Monopoly

Section: Chapter Questions

Problem 10PA

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