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b) A firm produces two types of sugar, A and B at a constant average cost of RM 2 and RM3 per kilogram, respectively.


b) A firm produces two types of sugar, A and B at a constant average cost of RM 2 and RM3 per kilogram, respectively. The quantities, q and qg (in kilogram) of A and B that can be sold each week are given by the joint -demand functions 4 400(P-P) and q 400(9+ p-2p) w Where pand Pare selling prices in ringgit per kilogram of A and B respectively Detemine the prices of A and B at which the firm maximize the profit ii How much is the maximum profit? i (8 marks)

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