Demand functions for the two products , Econometrics

The  firm  is  considering  manufacturing  a  second  product  in  its  factory
alongside the first. The demand functions for the two products are:

Qd1=180 - 4P1

Qd2=90 -  2P2

 
where the subscripts 1 and 2 refer to product 1 and product 2, respectively.
The firm now faces a total cost function:
TC=   Q+150
where  Q= Q1 + Q2

a) Dtermine the new total profit function for the firm as a function of Q1  and Q2.

b)  Using your new profit function measured in part (b)(i) find the level of output  for every product at the profit maximising point and display your outcome is a maximum.

Posted Date: 3/25/2013 5:33:27 AM | Location : United States







Related Discussions:- Demand functions for the two products , Assignment Help, Ask Question on Demand functions for the two products , Get Answer, Expert's Help, Demand functions for the two products Discussions

Write discussion on Demand functions for the two products
Your posts are moderated
Related Questions
Assume that the allowance Peter receives from parents is his only income.  He used to spend $30 a month to buy Coke at $.60 per can.  Coke is an inferior good for Peter.  Further a

verify Leibniz rule for differentiation under the integral sign for the following function 2x^2+3xy+3y^2

Given the demand function Qd = 650-5P-P2 where P=10 Find out the price elasticity of demand.

What is the rival principle of distribution? What are the impacts of ethics and morals on the rival principles of distribution?

what are factors contributing to the long run trend interms of trade of developing countries?

Can you explain the basic introduction of this methodology?

what factors dertemine underemployment/overemployment

Problem: a) Using a financial or economics theory, determine a simultaneous structural model and a recursive model, explaining each variable used in the models. b) Using

QM2 Econometric Project As part of the course requirements you have to undertake an econometric evaluation of an economic issue using data that you have gathered either from the ho