Question: A firm has a total revenue function based on producing two goods represented by the following equation. TR=-6Q12-10Q22+300Q1+380Q2 The firm also has a variable cost
A firm has a total revenue function based on producing two goods represented by the following equation.
TR=-6Q12-10Q22+300Q1+380Q2
The firm also has a variable cost of4Q12+2Q22+8Q1Q2. Regardless of how much the firm produces, they have a cost of 800.
The firm also has machinery so that only 30 total units of either good can be produced in a given time period.
Using calculus, what is the quantity of each good that should be produced to maximize profits? Verify using calculus that it is indeed a maximum.
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