Managerial economics
posted by Patrick .
Posted by Patrick on Saturday, September 22, 2007 at 5:25pm.
Suppose Nick produces to goods @ cost
C(q1,q2)=1000=.5q1^2+.5q2^25q1q2
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!!!
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