Question
Gwyneth's candle company produces and sells candles. The production process generates some polluting gases which affect the number of customers that eat at Kanye's waffle
Gwyneth's candle company produces and sells candles. The production process generates some polluting gases which affect the number of customers that eat at Kanye's waffle restaurant that is located near the candle company's production plant.
The candle company's profits are given by =c= 9.3c - (0.6c2 + 5x2 - xc), where c is the number of candles produced and sold, and x is the amount of pollution generated in the production process.
The waffle restaurant's profits are given by =w= 40w - (0.25w2+ xw - 80x), where w is the number of waffles produced and sold, and x is the amount of pollution from the candle company's production.
How many candles (c) will the candle company optimally choose to produce?
[Round all of your answers below to the second decimal place.] The correct answer is: 8.45
How much pollution (x) will the candle company generate? The correct answer is: 0.85
What is the waffle restaurant's optimal choice of w? (Remember that the waffle restaurant has no control over the amount of pollution generated by the candle company and must therefore take x as given.) The correct answer is: 78.31
The local government implements a new environmental law that forces the candle company to reduce its pollution tozero.
How many candles (c) will the candle company now choose to produce?The correct answer is: 7.75
How many waffles (w) will the waffle restaurant produce, given the new legislation?The correct answer is: 80.00
Suppose that Gwyneth decides to buy the waffle restaurant and therefore operates the candle company and restaurant jointly. How many candles (c) will the merged firm now decide to produce?The correct answer is: 8.65
How many waffles (w) will the merged firm produce?The correct answer is: 77.84
How much pollution (x) will the merged firm generate?The correct answer is: 1.08
Could you show the step to sovle this question. Can you solve on the paper please? Thank you.
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