Question 6A firm is a monopolistic producer of two goods G, and G2. The prices are related to quantitiesQi and Q2 according to the demand equationsQ1 = 50 – P.2Q2 = 90 – P2If the total cost function isTC = Q7 + 2Q.Q2 + Q(a) Find the values of Q, and Q2 which maximises profit by applying first and second orderconditions.(b) Find the maximum profit and deduce the prices that maximises profit

Given equations are: Q1=50−P1 2Q2=90−P2 TC=Q12+2Q1Q2+Q22

Question 6 A firm is a monopolistic producer of two goods G, and G2. The prices are related to quantities Qi and Q2 xcording to the demand equations Q. = 50 – P, 202 = 90 – P2 If the total cost function is TC = Q; + 2Q.02 + Q (a) Find the values of Q, and Q2 which maximises profit by applying first and second order conditions. (b) Find the maximum profit and deduce the prices that maximises profit

Question 6 A firm is a monopolistic producer of two goods G, and G2. The prices are related to quantities Qi and Q2 xcording to the demand equations Q. = 50 – P, 202 = 90 – P2 If the total cost function is TC = Q; + 2Q.02 + Q (a) Find the values of Q, and Q2 which maximises profit by applying first and second order conditions. (b) Find the maximum profit and deduce the prices that maximises profit

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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