Homework Answers
profit is $13000
given cost function=100q+49700
where q is the number of units sold
q=110 units
therefore total cost for 110 units=(100*110)+49700=60700
the price function= -2q+890
q=110
unit price= (-2*110)+890= -220+890=670
total sales=unit price * number of units sold
total sales=670*110=73700
profit=total sales-total cost
profit=73700-60700=13000
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Q
1
= 40 2P
1
P
2
, Q
2
= 35 P
1
P
2
, C = Q
2
1
+ 2Q
2
2
+ 10.
(a) Find the output levels that satisfy the first-order condition
for maximum
profit.
(b) Check the second-order sufficient condition. Can you conclude
that this
problem possesses a unique absolute maximum?
(c) What is the maximal profit?
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