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
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

Currently the stock of Backstreet Toys (BT) is selling for $20 per share and the risk free rate is5%. a) Draw a payoff diagram for each of the following 3 portfolios: i. Buy

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

Calculate the incremental profit Electron Control would earn by customizing its instruments and marketing directly to end users.

Consider an equation to explain salaries of CEOs in terms of annual firm sales, return on equity (ROE, in percent form), and return on the firm's stock (ROS, in percent form): L

demand analysis of fast food among civil servant

how much it costs to make this project?

Students in the red/black card game had to make individual deals. How would the situation change if they could bargain collectively?

what is the importance of price

The following table gives data on the Consumer Price Index (CPI) and the Standard & Poor (S&P) company''s index of 500 common stock prices. Year CPI Index S&P 500 Index 1978 65.2 9