The Prime Company produces two products, X and Y. They are produced jointly so for each X

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The Prime Company produces two products, X and Y. They are produced jointly so for each X manufactured a unit of Y is also produced. The joint cost function is
TC = 50 + 2Q + .5Q2
Q represents the number of joint units produced. The demand equations for the two products are the following:
Qx - 100 - Px
Qy = 60 - 2Py
a. How many units should the company produce per period?
b. What price should it charge for each of the joint products?
c. What will be the company's profit per period? Assume the company is a profit maximize.
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Managerial Economics

ISBN: 978-0133020267

7th edition

Authors: Paul Keat, Philip K Young, Steve Erfle

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