equilibrium pnces.QUESTION 3inonopoli,Aic producer 0two goods has a Jul H I IOW C0')1 Function'...

Question

equilibrium pnces.QUESTION 3inonopoli,Aic producer 0two goods has a Jul H I IOW C0')1 Function' XXXXXXXXXX (#+) () I I 0(:),where Qi and Q2 denote the quantities of Good I and Good 2. respectively. kind denote the corresponding prices then the demand equations areP =5O0, 4-Q2 P2 = 30+2Q, —Qz Find the maximum profit if the firm is contracted to produce a total of 15 units of either type. Calculate the equilibrium value of 2 and interpret its meaning.

Robert · Accepted Answer

Q1
a.
 maximise TR = P*Q 
P= 20-2Q
TR= 20Q-2Q2 
dTR/dQ= 0 = 20-4Q = 0
Q= 5
b.
To maximise profits we need Mr = MC
MR = 20-4Q
Mc = 3Q2 -16Q +20.
20-4Q = 3Q2 -16Q +20.

equilibrium pnces. QUESTION 3 inonopoli,Aic producer 0 two goods has a Jul H I IOW C0')1 Function ' XXXXXXXXXX (#+) () I I 0(:), where Qi and Q2 denote the quantities of Good I and Good 2....

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment