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

#title.monopoly, suppose only one professor teaches economics at your unive...

suppose only one professor teaches economics at your university, would you say that this prof is a monopolist who can exact any price from students in the form of readings assigned

Baumol''s theory, Profit maximization is theoretically the most sound but p...

Profit maximization is theoretically the most sound but practically unattainable objective of business firms. In the light of this statement critically appraise the Baumol’s sales

Production function and general equilibrium, Production Functions, Labor Ma...

Production Functions, Labor Markets, and a Small Open Economy. In 2007, the Icelandic economy was in general equilibrium, the supply of labor was a positive function of the real

Auto correlation, if there is no autocorrelation what will be done

if there is no autocorrelation what will be done

Need help with Econometrics Coursework, Hello I am a PostGrad student. Need...

Hello I am a PostGrad student. Need some help in the coursework

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

Quizzes., Hello, I have an online economics quizzes. three quizzes each qui...

Hello, I have an online economics quizzes. three quizzes each quiz 50 questions for 1.5 hour. its on R. Glenn Hubbard and Anothony Patrick O''Brien- Microeconomics, 4th Ed.I did th

Course work, estimate the determinants of demand of a firm or several firms...

estimate the determinants of demand of a firm or several firms within a particular industry or country

Human Resources Management, Effective Human Resources Management Depends Up...

Effective Human Resources Management Depends Upon Sound Reward System Essays and Term Papers

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