Question
A firm produces two different goods, with demand given by the following: Pa = 500-15Qa + 4Qb and Pb = 200 - 2Qb where Pa
A firm produces two different goods, with demand given by the following:
Pa = 500-15Qa + 4Qb and Pb = 200 - 2Qb where Pa = price of good A, Pb = price of good B, Qa = quantity of good A and Qb = quantity of good B.
The marginal costs for the two goods are 30 for good A and 40 for good B.
Determine optimal prices and quantities for each good.
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Classics In Game Theory
Authors: Harold William Kuhn
1st Edition
1400829151, 9781400829156
