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1.A firm has a total revenue function based on producing two goods represented by the following equation. The firm also has a variable cost of
1.A firm has a total revenue function based on producing two goods represented by the following equation.
The firm also has a variable cost of . Regardless of how much the firm produces, they have a cost of 800.
The firm also has machinery so that only 30 total units of either good can be produced in a given time period.
Using calculus, what is the quantity of each good that should be produced to maximize profits? Verify using calculus that it is indeed a maximum. (15 points)
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