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A firm produces two products (A and B) jointly. Every time a unit of A is produced, a unit of B is also produced as
A firm produces two products (A and B) jointly. Every time a unit of A is produced, a unit of B is also produced as a byproduct. The demand functions for A and B are:
QA=3002PA
QB=100PB
The marginal cost of producing a joint output is:
MC=50+Q
Assuming that disposal is costless, what is the number of units of joint output that should be produced___?The firm should sell____units of product A and charge a price of $____.The firm should also sell___units of product B and charge a price of $____.
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