)A two Product finm faces the follow-= 40-2P1demand and Cost function 8-a) Find the output levels that satiaty the12demand amd40-2P,-P2タ,=35-P、- 8follow-ngCont function832Demand function.C%=8it 20+ 10cost function.a) Find the output levels that sati.order Conditionsythetor maximum profit.6)check the 2nd(ondition. Can you conclude that thisProblem Posses aOrder for sufficientunique maximum)c)What in the maximal profit?

We have :- Q1=40-2P1-P2 Or P2=40-2P1- Q1………………………………(I) Q2=35-P1-P2 Or P2=35-P1- Q2…………………..(II)…

) A two Product firm faces the fellow demand and cost functions- 40-2P1-P2 82=35-P-Pz C= 8it2¢十16 a) Find the output levels that satinty the Order Conditions for maximum protit. Demand function. Cont function. 6)check condition. Can you conclude that this Problem Poses a the 2nd onder for sufficient unique maximum c) What in the maximal profit?

) A two Product firm faces the fellow demand and cost functions- 40-2P1-P2 82=35-P-Pz C= 8it2¢十16 a) Find the output levels that satinty the Order Conditions for maximum protit. Demand function. Cont function. 6)check condition. Can you conclude that this Problem Poses a the 2nd onder for sufficient unique maximum c) What in the maximal profit?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter9: Applications Of Cost Theory

Section: Chapter Questions

Problem 1.3CE

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Show the total cost expression and calculate the EOQ for an item with holding cost rate 18%, unit cost P8.00, annual demand of 40000, and ordering cost of P48. *
An explicit cost is: Select one: a) An implicit cost to the factor of production owner who recieves that payment b) a money payment made for factors of production not owned by the firm itself c) is the cost of the forgone alternative incurred by the individual after making choices d) omitted when accounting profits are calculated e) always in excess of a factor of production's oppurtunity cost
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Your firm has discovered a cheap and efficient technology of turning used plastic bottles and bags into various products. You limit your attention to the following two production options: you can produce plastic utensils or helmets. In the "utensils" case your estimat ann revenue $25,000, while production will cost you $8,000. However, in your "helmets" option, you expect to sell 2000 helmets every year at $10 each and the average total cost of every helmet will be $3. What is your accounting ?profit if you decided to produce helmets