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A firm produces red and blue bobbleheads. It can sell red bobbleheads for
$20 - Qr /2000 a piece
And blue bobbleheads for
$17 - Qb/2000 a piece
Where Qr = red bobbleheads per week
Qb = ble bobbleheads per week
The total cost of producing Q = Qr + Qb bobbleheads is
4Q + Q^2/4000.
What are the profit maximizing quantities of red and blue bobbleheads for this firm to make and sell?
What is the average cost function and the minimum efficient scale of the firm?
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