Q1. Consider a monopolist which produces two different products, each having the followingdemand functions:91 = 14 — —P1,92 ₂ = 24 - 2₂2₁where 9₁ and 92 represent the output levels of product 1 and product 2 and p₁ and p₂represent their prices.The monopolist's joint cost function is given asC (91, 92) = 9+59192 +92/2.(b)State the first-order conditions for profit maximization. Find the productionlevels, 9₁ and 92, and the monopoly prices, p₁ and p2, that satisfy the conditions.

Given Demand function: q1=14-14p1 ......(1)and q2=24-12p1…

Consider a monopolist which produces two different products, each having the following demand functions: 91 = 14-7P1₁ 92 = 24- -P2, where 9₁ and 92 represent the output levels of product 1 and product 2 and p₁ and p represent their prices. The monopolist's joint cost function is given as C (91, 92) = 9+59192 +93². (b) State the first-order conditions for profit maximization. Find the production levels, 9₁ and 92, and the monopoly prices, pi and p2, that satisfy the conditions.

Consider a monopolist which produces two different products, each having the following demand functions: 91 = 14-7P1₁ 92 = 24- -P2, where 9₁ and 92 represent the output levels of product 1 and product 2 and p₁ and p represent their prices. The monopolist's joint cost function is given as C (91, 92) = 9+59192 +93². (b) State the first-order conditions for profit maximization. Find the production levels, 9₁ and 92, and the monopoly prices, pi and p2, that satisfy the conditions.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Monopoly

Section: Chapter Questions

Problem 7SQP

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