The cost c in euro for the production of q₁ units of good 1 and 92 units of good 2 is given by the equation c(91, 92) = 691 +4q2 +525. The demand function of good 1 is given by p₁ = 36 - q₁, while the demand function of good 2 is given by p2 = 44 - 92. (a) Find the equation of the profit function. (b) Show on a graph which combinations (91, 92) give neither profit nor loss.
The cost c in euro for the production of q₁ units of good 1 and 92 units of good 2 is given by the equation c(91, 92) = 691 +4q2 +525. The demand function of good 1 is given by p₁ = 36 - q₁, while the demand function of good 2 is given by p2 = 44 - 92. (a) Find the equation of the profit function. (b) Show on a graph which combinations (91, 92) give neither profit nor loss.
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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