A monopolist sells its product in two isolated markets with demand functions P1 = 32 Q
Question:
A monopolist sells its product in two isolated markets with demand functions
P1 = 32 − Q1 and P2 = 40 − 2Q2
The total cost function is TC = 4(Q1 + Q2).
(a) Show that the profit function is given by
(b) Find the values of Q1 and Q2 which maximise profit and calculate the value of the maximum profit. Verify that the second-order conditions for a maximum are satisfied.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
a Hence b At a stationary point ag 202 ag ag A...View the full answer
Answered By
Ayush Mishra
I am a certified online tutor, with more than 3 years of experience in online tutoring. My tutoring subjects include: Physics, Mathematics and Mechanical engineering. I have also been awarded as best tutor for year 2019 in my previous organisation. Being a Mechanical Engineer, I love to tell the application of the concepts of science and mathematics in the real world. This help students to develop interest and makes learning fun and easy. This in turn, automatically improves their grades in the subject. I teach students to get prepared for college entry level exam. I also use to teach undergraduate students and guide them through their career aim.
2+ Reviews
10+ Question Solved
Related Book For 
Question Posted:
