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

Crude oil, A shok question #Minimum 100 words accepted# when did...

A shok question #Minimum 100 words accepted# when did the most recent shock to the crude oil market occur

Expected values and variances, What is the expected value and variance of y...

What is the expected value and variance of y = 3x+2 knowing that E(X) = 8 and var(X) = 4.

Ramdom variable, let y denote the number of "heads" that occur when two coi...

let y denote the number of "heads" that occur when two coins are tossed

Autocorrelation, what is the mathematical origin of durbin watson test for ...

what is the mathematical origin of durbin watson test for autocorrelation

Determine partial derivatives of the demand function, Problem 1. Consider t...

Problem 1. Consider the demand function Q(p 1 , p 2 , y) = p 1 -2 p 2 y 3 , where Q is the demand for good 1, p 1 is the price of good 1, p 2 is the price of good 2 and y is t

Explain the meaning of regression, Problem 1: a. Explain the meaning o...

Problem 1: a. Explain the meaning of regression and its usefulness. b. Distinguish between GARCH (1, 1) and asymmetric GARCH. c. Clearly explain the two tests used for

calculate real and nominal growth rate in gdp, 1. (a) Consider a perfectly...

1. (a) Consider a perfectly competitive industry that produces a total output of 190 units in the long run. Suppose there are n identical firms in the market. Each firm then produc

Income elasticity, The following multiple regression results are part of a ...

The following multiple regression results are part of a study of the demand for chicken in the USA. Q Calculates the quantity of chicken purchased per annum. PC and PB are the pric

Gravity model, how to calculate trade potential on eviews?

how to calculate trade potential on eviews?

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