Question
NJ Petroleum Company's Profit is a function of Q1 = heating oil and Q2 = gasoline. = -60 +120*Q1 + 140*Q2 -10*Q1 2 -8*Q2 2
NJ Petroleum Company's Profit is a function of Q1 = heating oil and Q2 = gasoline.
= -60 +120*Q1 + 140*Q2 -10*Q12-8*Q22-.1*Q1*Q2.Because of contractual obligations and environmental regulations, NJ must meet the following constraint: .5*Q1 + 2*Q2 = 30.What is the profit maximizing Profit when NJ chooses the optimal amounts of Q1 and Q2?
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Labor Economics
Authors: George J. Borjas
6th edition
73523208, 2900073523209 , 978-0073523200
