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A firm is producing three goods and given inverse demand functions are P1=140-4Q1-2Q2-2Q3, P2=240-2Q1-8Q2-4Q3, and P3=180-2Q1-2Q2-6Q3 And Total Cost =2Q1^2+4Q2^2+2Q3^2 +2Q1Q2 + 2Q1Q3 + 4Q2Q3.
A firm is producing three goods and given inverse demand functions are
P1=140-4Q1-2Q2-2Q3, P2=240-2Q1-8Q2-4Q3, and P3=180-2Q1-2Q2-6Q3
And Total Cost =2Q1^2+4Q2^2+2Q3^2 +2Q1Q2 + 2Q1Q3 + 4Q2Q3. Now optimize the firm's profit for these three goods using Hessian
Method of optimization. First, find all the optimal values of Q1, Q2, Q3, and profit using
crammer's rule finally show that the profit is optimized (maximized) with these values.
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