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Product at the profit maximising prices

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Reference no: EM132312296

A monopolist offers two products x,z with the following inverse demand function

p1=20 - 4x

p2= 24 - 6z

where p1 and p2 are the prices of the goods and x and z are quantity demanded. The monopolist's total cost function, TC is given by

TC=2x2 + 12xz + 2z2

Find the prices and output levels that maximise profits; the price elasticity of demand for each product at the profit maximising prices.

Reference no: EM132312296

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