A company operates two plants which manufacture the same item and whose total cost functions are C₁ = 7.5 +0.03q² and C₂=3.8+0.05q2, where 9₁ and 9₂ are the quantities produced by each plant. The total quantity demanded, q = 9₁ +92, is related to the price, p, by p = 50 -0.05q. How much should each plant produce in order to maximize the company's profit? 91 92 = ||

College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
Section6.CR: Chapter Review
Problem 70E: A company manufactures two fertilizers, x and y. Each 50-pound bag of fertilizer requires three...
icon
Related questions
icon
Concept explainers
Topic Video
Question

25

A company operates two plants which manufacture the same item and whose total cost functions are
C1 = 7.5 +0.03q? and C2 = 3.8 + 0.05g3,
where q1 and q are the quantities produced by each plant. The total quantity demanded, q = 1 + 42 , is related to the price, p, by
р 3 50 — 0.05g.
How much should each plant produce in order to maximize the company's profit?
9 =
92
Adapted from M. Rosser, Basic Mathematics for Economists, p. 318 (New York: Routledge, 1993).
Transcribed Image Text:A company operates two plants which manufacture the same item and whose total cost functions are C1 = 7.5 +0.03q? and C2 = 3.8 + 0.05g3, where q1 and q are the quantities produced by each plant. The total quantity demanded, q = 1 + 42 , is related to the price, p, by р 3 50 — 0.05g. How much should each plant produce in order to maximize the company's profit? 9 = 92 Adapted from M. Rosser, Basic Mathematics for Economists, p. 318 (New York: Routledge, 1993).
Expert Solution
steps

Step by step

Solved in 5 steps

Blurred answer
Knowledge Booster
Angles, Arcs, and Chords and Tangents
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, advanced-math and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Intermediate Algebra
Intermediate Algebra
Algebra
ISBN:
9780998625720
Author:
Lynn Marecek
Publisher:
OpenStax College
Elementary Geometry For College Students, 7e
Elementary Geometry For College Students, 7e
Geometry
ISBN:
9781337614085
Author:
Alexander, Daniel C.; Koeberlein, Geralyn M.
Publisher:
Cengage,
Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage
Algebra for College Students
Algebra for College Students
Algebra
ISBN:
9781285195780
Author:
Jerome E. Kaufmann, Karen L. Schwitters
Publisher:
Cengage Learning
College Algebra
College Algebra
Algebra
ISBN:
9781938168383
Author:
Jay Abramson
Publisher:
OpenStax