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A firm produces two types of sugar, A and B at a constant average cost of RM 2 and RM 3 per kilogram, respectively. The

  1. A firm produces two types of sugar, A and B at a constant average cost of RM 2 and RM 3 per kilogram, respectively. The quantities, and (in kilogram) of A and B that can be sold each week are given by the joint -demand functions qA = 400 (pA - pB)

and qB = 400(9 + pA - 2pB)

Where PA and PB are selling prices in ringgit per kilogram of A and B respectively.

  1. Determine the prices of A and B at which the firm maximize the profit.
  2. How much is the maximum profit?

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