Question
ACME Woodgets produces two related types of woodgets. Function as follows Q A = 120 - 3P A + 2P B and Q B =
ACME Woodgets produces two related types of woodgets. Function as follows
QA = 120 - 3PA + 2PB and QB = 100 + PA- 2PB
where QA and QB are the weekly demands for type A and type B woodgets, respectively, and PA and PB are the prices that ACME sets for these goods.
(a) Find ACME Woodgets' revenue as a function of the prices: R = R(PA,PB).
(b) Find R/PA and R/PB.
(c) Find the prices that ACME should set so that R/PA = 0 and R/PB= 0.
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Data Analysis And Decision Making
Authors: Christian Albright, Wayne Winston, Christopher Zappe
4th Edition
538476125, 978-0538476126
