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3. Food for Friends [FFFJ is a manufacturer of plant-based cat food. FFF uses a production technology such that the production of cat food also

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3. Food for Friends [FFFJ is a manufacturer of plant-based cat food. FFF uses a production technology such that the production of cat food also generates a bar-product that can be sold to organic fertilizer manufacturers. FFF has determined that each 10 kilograms of plants processed for cat food produces l kilogram of cat food and 1 kilogram offertilizer material in a fixed 1:1 ratio. Marginal costs are estimated to he a constant \"3 per 10 kilograms of plants processed. FFF estimates the demand curve for cat food as follows: Pc= 1.09.00002Qc FFF estimates the demand curve for fertilizer material as follows: Pr=1-0.WDDUSQF In these equations, Bic refers to one batch of cat food and 0:. refers to one batch offertilizer material. Each hatch contains 1 kilogram of either product. 3. Determine the profit-maximizing sales quantities and prices FFF should set for cat food and fertilizer material. b. As a result of pet ownership becoming more popular, the market demand for catfood is doubled [a 100% increase in the demand for cat food}. FFF estimates the new demand curve for cat food as follows: Pam = 2(1 - 101.02 0:] = 20' - o.oooo4 Cir: All other relations remain the same as before

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