Demand functions for the two products , Econometrics

Assignment Help:

The  firm  is  considering  manufacturing  a  second  product  in  its  factory
alongside the first. The demand functions for the two products are:

Qd1=180 - 4P1

Qd2=90 -  2P2

 
where the subscripts 1 and 2 refer to product 1 and product 2, respectively.
The firm now faces a total cost function:
TC=   Q+150
where  Q= Q1 + Q2

a) Dtermine the new total profit function for the firm as a function of Q1  and Q2.

b)  Using your new profit function measured in part (b)(i) find the level of output  for every product at the profit maximising point and display your outcome is a maximum.


Related Discussions:- Demand functions for the two products

Equation prove, prove that summation k =0 and summation kxi=1

prove that summation k =0 and summation kxi=1

Estimation, the demand for blankets has been estimated y^=0.5-1.5x2+3.0x3

the demand for blankets has been estimated y^=0.5-1.5x2+3.0x3

Functions, examples of economic relationships

examples of economic relationships

I need a help with my assignment, My econometrics assignment is due for mon...

My econometrics assignment is due for monday, August 18th. I''m running out of time and need a help to meet the deadline. I need answers for 4 problems from the basic econometrics.

Technical and economic efficiency, What''s the relationship between economi...

What''s the relationship between economic efficiency and technical efficiency

GDP, If in some country personal consumption expenditures in a specific yea...

If in some country personal consumption expenditures in a specific year are $50 billion, purchases of stocks and bonds are $30 billion, net exports are -$10 billion, government pur

What do you understand by non-linear models, Question: (a) Formulate a ...

Question: (a) Formulate a VAR with 4 lags and also rewrite it in matrix form, mentioning the limitations of such models. (b) What is the rationale behind introducing lag-dep

David the most interest, David has  £5000  that  he wishes  to  save  for  ...

David has  £5000  that  he wishes  to  save  for  six  years. Bank A  offers  him  an interest  rate  of  4%  per  annum  compounded  monthly.  Bank  B  offers  him  an interest ra

Public economics, Explain the stages and various coordination mechanisms in...

Explain the stages and various coordination mechanisms involved in policy processes. Discuss various factors that influenced the agenda setting in policy processes

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd