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2. Answer all parts (a) to (e) of this question. If a firm produces quantities qi and q2 of two goods, its total cost is:
2. Answer all parts (a) to (e) of this question. If a firm produces quantities qi and q2 of two goods, its total cost is: The goods are sold in competitive markets at prices p, > 1 and pz. (a) [10 marks] Write down an expression for the profit of the firm. Obtain and provide an economic interpretation for the first-order profit-maximising conditions. (b) [10 marks] Using the Cramer's rule, find the quantities q and q2 that satisfy the first order conditions
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