A two product firm faces the following demand anc cost functions: Q1 = 40 - 2P1 - P2 Q2= 35 - P1 - P2 C = Q21 + 2 Q22 + 10 (a) Find the output levels taht satisfy the first-order condition for maximum profit. (use fractions.) (b) Check the second-order sufficient condition. Can you conclude that this problem possesses a unique absolute maximum? (c) What is the maximal profit?
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A two product firm faces the following demand anc cost functions:
Q1 = 40 - 2P1 - P2 Q2= 35 - P1 - P2 C = Q21 + 2 Q22 + 10
(a) Find the output levels taht satisfy the first-order condition for maximum profit. (use fractions.)
(b) Check the second-order sufficient condition. Can you conclude that this problem possesses a unique absolute maximum?
(c) What is the maximal profit?
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