Look again at Zicon Manufacturinga firm that produces products that are substitutes in consumption. Suppose that the

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Look again at Zicon Manufacturing—a firm that produces products that are substitutes in consumption. Suppose that the production manager changed the estimates of the total and marginal cost functions to

TC_X = 27Q_X + 0.00025 Q²_X and TC_Y = 20Q_Y + 0.000125 Q²_Y
MC_X = 27 + 0.0005Q_X and MC_Y = 20 + 0.00025Q_Y

a. Calculate the new profit-maximizing levels of output and price for the two products.
b. How much profit does Zicon earn?

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Managerial Economics Foundations of Business Analysis and Strategy

ISBN: 978-0078021909

12th edition

Authors: Christopher Thomas, S. Charles Maurice

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Question Posted: Feb 24, 2020 08:59 AM

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Look again at Zicon Manufacturinga firm that produces products that are substitutes in consumption. Suppose that the

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Managerial Economics Foundations of Business Analysis and Strategy

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