3. A scooter manufacturer produces the same model of a scooter at two different production plants....

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3. A scooter manufacturer produces the same model of a scooter at two different production plants. The cost of production of x1 scooters at plant I is given by C1=+1,000X1+2,500, and the cost of production of X2 scooters at plant II is given by, C2=1.5 +2000X2+1800, Where x1 and x2 are the annual outputs of plant I and II respectively. (i) If each scooter is sold at a uniform price of Rs. 20,000, find the levels of production of each plant so that profits are maximised. (ii) If the annual demand of scooters follows the demand law x=30,000-p, where p is the price of a scooter, find the levels of production of each plant for maximum profits and the price of a scooter. 3. A scooter manufacturer produces the same model of a scooter at two different production plants. The cost of production of x1 scooters at plant I is given by C1=+1,000X1+2,500, and the cost of production of X2 scooters at plant II is given by, C2=1.5 +2000X2+1800, Where x1 and x2 are the annual outputs of plant I and II respectively. (i) If each scooter is sold at a uniform price of Rs. 20,000, find the levels of production of each plant so that profits are maximised. (ii) If the annual demand of scooters follows the demand law x=30,000-p, where p is the price of a scooter, find the levels of production of each plant for maximum profits and the price of a scooter.

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i To maximize profits we need to maximize the difference between revenue and production costs for bo... View the full answer