Suppose that one factory inputs its goods from two different plants, A and B, with different costs, 2 and 7 each respective. And suppose the price function in the market is decided as p(x, y) = 100 - x - y where a and y are the demand functions and 0 ≤ x, y ≤ 30. Then as x = y = the factory attains the maximum profit,

Suppose that one factory inputs its goods from two different plants, A and B, with different costs, 2 and 7 each respective. And suppose the price function in the market is decided as p(x, y) = 100 - x - y where a and y are the demand functions and 0 ≤ x, y ≤ 30. Then as x = y = the factory attains the maximum profit,

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

ChapterB: Differential Calculus Techniques In Management

Section: Chapter Questions

Problem 5E

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Suppose that one factory inputs its goods from two different plants, A and B, with different costs, 4 and 7 each respective. And suppose the price function in the market is decided as p(x, y) = 100 - x - y where and y are the demand functions and 0 < x, y. Then as x = y = the factory can attain the maximum profit,
A firm's demand function is Q = 16 -P and its total cost function is defined as TC = 3 + Q+ 0.25Q² Use these two functions to form the firm's profit function and then determine the level of output that yields the profit maximum. What is the level of profit at the optimum?
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