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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+150where 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.
Given the demand function Qd = 650-5P-P2 where P=10 Find out the price elasticity of demand.
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A bottling company has determined the number of machine breakdowns per month and their respective probabilities as given below: Number of Breakdowns Probability
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Replicate the estimations in Table 2 on page 82 of Graddy (1995), but excluding the data of King Whiting.
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