A company has two wings producing two products - Product 1 and Product 2 . P1 and P2 are price per unit for Product 1 and Product 2respectively. Similarly, q1 and q2 are the respective amount of units produced for Product 1 and Product 2. Pj and P2 are related to qı and q2 bythe equationsP = 155q2 + 26q – q?92,P2 = 295q1 + 18q{ – 9ź91-The total cost of production for the company is given by,C = 100q142.The total relative profit is R =total profit/total cost , where total profit =total revenue – total cost; and total revenue = ( Price per unit of product1* quantity of product 1) + (Price per unit of product 2 * quantity of product 2)a. Find the relative profit Ras a function of q1 and q2 and simplify the expression.b. Given that the company produces q1 units of Product 1 what amount of units q; of Product 2 will maximize the total relative profit Rfor thecompany.c. Given that the company produces q2 units of Product 2 what amourofhits qProduct 1 will maximize the total relative profit Rfor thecompany.

Product 1: P1=155q2+26q22-q12q2 Product 2: P2=295q1+18q12-q22q1 Total Cost: C=100q1q2 Relative…

Answered: A company has two wings producing two…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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