Question 1: A firm sells a good with an average cost 10 AC = Q+ ab + a) If the demand function is given by P 200 aQ, find the output to obtain the maximum profit. b) After some time, the firm decided to s product in two isolated markets with de and P. = 80

Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
Problem 27EQ
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Question 1:
A firm sells a good with an average cost
10
AC = Q + ab+
a) If the demand function is given by P =
200- aQ, find the output to obtain the
maximum profit.
b) After some time, the firm decided to sell its
product in two isolated markets with demand
functions P, =100-20, and P2 80-
%3D
Q2. Find the output in each market in order
to obtain the maximum total profit.
Transcribed Image Text:Question 1: A firm sells a good with an average cost 10 AC = Q + ab+ a) If the demand function is given by P = 200- aQ, find the output to obtain the maximum profit. b) After some time, the firm decided to sell its product in two isolated markets with demand functions P, =100-20, and P2 80- %3D Q2. Find the output in each market in order to obtain the maximum total profit.
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