A monopolistic producer of two goods has a total cost function TC = 5Q1+ 10Q2 and a total revenue TR = 50Q1- Q12 - 2Q2Q1+ 100Q2– 4Q2² Using the same functions as given in Question 1, now consider when the firm's total costs are fixed at RM200. i) Calculate the values of 0, and Q2 will yield a maximum profit using Lagrange Multiplier Method.

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A monopolistic producer of two goods has a total cost function TC = 5Q1+ 10Q2 and a total
revenue TR = 50Q1- Q1² – 2Q2Q1+100Q2– 4Q22
Using the same functions as given in Question 1, now consider when the firm's total costs are
fixed at RM200.
i) Calculate the values of Q, and Q2 will yield a maximum profit using Lagrange Multiplier
Method.
Transcribed Image Text:A monopolistic producer of two goods has a total cost function TC = 5Q1+ 10Q2 and a total revenue TR = 50Q1- Q1² – 2Q2Q1+100Q2– 4Q22 Using the same functions as given in Question 1, now consider when the firm's total costs are fixed at RM200. i) Calculate the values of Q, and Q2 will yield a maximum profit using Lagrange Multiplier Method.
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