Question
A firm is a monopolistic producer of two goods G1 and G2. The prices are related to quantities Q1 and Q2 according to the demand
A firm is a monopolistic producer of two goods G1 and G2. The prices are related to quantities Q1 and Q2 according to the demand equations P1 = 50 Q1 P2 = 95 3Q2
MFE_C05d.qxd 16/12/2005 10:42 Page 393
If the total cost function is TC = Q1 2 + 3Q1Q2 + Q2 2 show that the firm's profit function is = 50Q1 2Q1
2 + 95Q2 4Q2 2 3Q1Q2
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Power And Plenty Trade, War, And The World Economy In The Second Millennium
Authors: R Findlay, Ronald Findlay
1st Edition
0691143277, 9780691143279
