Question: A company operates two plants which manufacture the same item and whose total cost functions are C1 = 6+0.04q1^2andC2 = 5 + 0.06q2^2, where q1

A company operates two plants which manufacture the same item and whose total cost functions are C1 = 6+0.04q1^2andC2 = 5 + 0.06q2^2, where q1 and q2 are the quantities produced by each plant. The total quantity demanded, q=q1+q2 , is related to the price, p , by p = 40 − 0.06q. How much should each plant produce in order to maximize the company's profit?

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Total cost C 1 C 2 6004q 1 2 5006q 2 2 11 004q 1 2 5006q 2 2 Revenue p... View full answer

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