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8. Given a two product firm in a competitive market. Revenue - P191 + P292 Cost = 293 + 9192 + 292 a. Find q1

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8. Given a two product firm in a competitive market. Revenue - P191 + P292 Cost = 293 + 9192 + 292 a. Find q1 and q2. [Hint: write out the x equation. Set Tiq, and Ta, to zero. Note: q1 and q2 will be in terms of p1 and P2 (not numbers). ] b. Use the Hessian method to classify each point as a local maximum, local minimum or indeterminate (saddle point). c. Find pi, where p, has the following market demand and supply equations: QD = 2,000 - 25 P1 Qs=-200 + 30 P1 d. Next, the firm charges a price, p2, such that p2 = p1 + 5 . Find p2. e. Return to (a). Find q; and q2. [Note: these answers will be numbers.] f. Having found q1,q2, pi, and p2 now find n*(q1, q2, pi, pz)

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