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
What methodology will be suitable to use for a doctoral research proposal thesis(The impact of persistent poverty on rural urban migration in Nigeria)?

As in the model solved initially, the following is the LP model Maximize Z = $42.13*(x 11 + x 12 + x 13 + x 14 ) + $38.47*(x 21 + x 22 + x 23 + x 24 ) + $27.87*(x 31 + x

What is the ADF max test?

Assume the price elasticity of cigarettes is 0.25. By how much would prices have to increase to get a 20% reduction on smoking?

Effective Human Resources Management Depends Upon Sound Reward System Essays and Term Papers

Brie?y describe the preference reversal phenomenon, and explain how Grether and Plott's (1979) experimental design deals with anchoring as one of its possible causes. Using a dr


The inverse demand and supply functions for a product are given as:  where P  is  price, Q  is  quantity  and  the  subscripts  d  and  show demand and supply, respectiv

#question.Suppose that you have 150 observations on production (yt) and investment (it), and you have estimated the following ADL(3,2) model: (1 – 0.5L – 0.1L2 – 0.05L3)yt = 0.7 +

how can the factors of production be occupationally mobile