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2. Afirm sells a good in two different markets, with the following demand functions: P, =600-2Q, P, =800-30, The firm also has the following total
2. Afirm sells a good in two different markets, with the following demand functions: P, =600-2Q, P, =800-30, The firm also has the following total cost function: C =100Q, +120Q, +20,0, Find the firms TR function, and hence the MR and MC functions for each good. Find the profit function, and the maximum profit attainable. Demonstrate that you have a maximum using second order conditions c. Suppose demand for the first product increases and the firm decides to produce more of it. Explain why they should also change the amount they produce of the second product. Without further calculation, state whether they should produce more or less and explain why
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