A company manufactures two products If it charges price p i for product i, it can sell q i units of product i, where q 1 60 3p 1 p 2 and q 2 80 2p 2 p 1 It costs $5 to produce a unit of product 1 and $12 to produce a unit of product 2 How many units of each product should the company produce, and w...

Producing and pricing two products De ...

A company manufactures two products. If it charges price p i for product i, it can sell

Question:

A company manufactures two products. If it charges price p_i for product i, it can sell q_i units of product i, where q₁ = 60 – 3p₁+ p₂ and q₂ = 80 – 2p₂ + p₁. It costs $5 to produce a unit of product 1 and $12 to produce a unit of product 2. How many units of each product should the company produce, and what prices should it charge, to maximize its profit?