GM produces Chevys (c) and Buicks (b). The cars are considered substitutes by consumers. Demands are Qc=100-.5Pc-.1Qb
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GM produces Chevys (c) and Buicks (b). The cars are considered substitutes by consumers. Demands are Qc=100-.5Pc-.1Qb and Qb=40-.4Pb-.2Qc. The price functions are Pc=200-2Qc-.2Qb and Pb=100-2.5Qb-.5Qc. Total Revenue is TR=Pc*Qc+Pb*Qb. Total Cost is TC=2Qc+1Qb. Find The profit maximizing amount of Chevys to produce is ______. ? and the profit maximizing price of chevy is ----? Find the profit maximizing price of Buick is? keeping in mind Chevys and Buicks are substitutes.
Related Book For
Supply Chain Management A Logistics Perspective
ISBN: 978-0538479196
9th edition
Authors: John coyle, John Langley, Robert Novack, Brain Gibson
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