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

Q_d1=180 - 4P₁

Q_d2=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

Ask an Expert

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

Write your message here..

Related Questions

Indifference curves, Assume that the allowance Peter receives from parents ... 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

Maximizing profit, verify Leibniz rule for differentiation under the integr... verify Leibniz rule for differentiation under the integral sign for the following function 2x^2+3xy+3y^2

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

Rival principle of distribution., What is the rival principle of distributi... What is the rival principle of distribution? What are the impacts of ethics and morals on the rival principles of distribution?

Economic development, what are factors contributing to the long run trend i... what are factors contributing to the long run trend interms of trade of developing countries?

#title.Structural Variance Auto Regression, Can you explain the basic intro... Can you explain the basic introduction of this methodology?

Crossection regression, what factors dertemine underemployment/overemployme... what factors dertemine underemployment/overemployment

Explain structural model and a recursive model, Problem: a) Using a fi... 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

Project, QM2 Econometric Project As part of the course requirements you hav... 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

Political problems of econometrics, kindly help in in doing the assignment kindly help in in doing the assignment