# Managerial economics

posted by
**Patrick** on
.

Posted by Patrick on Saturday, September 22, 2007 at 5:25pm.

Suppose Nick produces to goods @ cost

C(q1,q2)=1000=.5q1^2+.5q2^2-5q1q2

If nick produces only one of he two goods his cost is given this cost function with the other good set = to 0.

The inverse demand functions for the two goods are given by

p1=a-.25q1 and p2=A-.05q2 a=17 A=10

How much more of good one does nick produce to maximize profits when he optimally produces both goods than when he produces only one?

Need help setting up and solving Please!!!