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

Quantity theory of money , Suppose an economy has the following Real money ...

Suppose an economy has the following Real money demand Function: L(Y,i) = 1000 + 0.3Y - 4000i, where   i is the nominal interest rate paid on non-monetary (financial) assets,

Multicollinearity, if there is multicollinearity so why we can not estimate...

if there is multicollinearity so why we can not estimate the value of parameters?

Assignment., why do we make use of regression analysis in our econometrics ...

why do we make use of regression analysis in our econometrics analysis

Standard divation, demand for tea, Y, are assumed to be affected by income ...

demand for tea, Y, are assumed to be affected by income of students, X. A simple linear regres-sion analysis was performed on 20 observations and the results were: Independent vari

Using R to generate results, I have a few econometric that require the use ...

I have a few econometric that require the use of R to generate the answer

The Myth of Public Goods by Mark Davis (2010); the J, Ask questia) Summariz...

Ask questia) Summarize the basic tenets of the arguments in thiscase b) Do you agree with main tenets of the arguments in the case? Why? Justify your answer with detailed explanati

Primal and dual lp problems, As in the model solved initially, the followin...

As in the model solved initially, the following is the LP model Maximize Z = $42.13*(x 11 + x 12 + x 13 + x 14 ) + $38.47*(x 21 + x 22 + x 23 + x 24 ) + $27.87*(x 31 + x

Modelling in eviews software, Would you please advise me what would be the ...

Would you please advise me what would be the code in Eviews if I have first dependent variable in continuous data, second censor data and third discrete data in my system (structu

Request of answers, Ask q2. Using a sample of 545 full-time workers, a rese...

Ask q2. Using a sample of 545 full-time workers, a researcher is interested in the question as to whether women are systematically underpaid compared with men. First, a research es

Determine the amount of the money, You are gambling. There is a white urn i...

You are gambling. There is a white urn in front of you, which contains a total of 100 black and white balls. You are blindfolded, get to pick one ball randomly, and see which color

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