Provent Sdn. Bhd produces two products, pros and cons, in fixed proportions on a one-toone basis, so that for every one pro produced one con is produced. The firm has the following total cost function:

C= 150 + 50Q + 2.5Q2 (10:12)

Where Q is the number of product bundles produced, consisting of one

Pro and one con each. The demand functions for the two products are:

PP = 200 -2QP (10:13)

PC = 120 -3QC (10:14)

Where PP and QP are the price (in ) and output of pros and PC and QC are the price and output of cons.

Required: Determine the optimal price and output for each product.