A multinational corporation has two semiautonomous divisions: production and marketing. The production division manufactures a product that is purchased and then resold by the marketing division. The marginal cost functions for the production division and for the value added by the marketing division are defined below. MCP = 200 + 3Q MCM = 4Q The demand function for the final product is: QD = 600 - P Assume that the external market for the output of the production division is perfectly competitive and that the market price is $300.

A multinational corporation has two semiautonomous divisions: production and marketing. The production division manufactures a product that is purchased and then resold by the marketing division. The marginal cost functions for the production division and for the value added by the marketing division are defined below. MCP = 200 + 3Q MCM = 4Q The demand function for the final product is: QD = 600 - P Assume that the external market for the output of the production division is perfectly competitive and that the market price is $300.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section: Chapter Questions

Problem 53P

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