Question: can workings out be shown pls :) Task 4 A firm sells two products. Find the quantity of each product, Q1 and Q2, that will

can workings out be shown pls :)
can workings out be shown pls :) Task 4 A firm sells

Task 4 A firm sells two products. Find the quantity of each product, Q1 and Q2, that will be sold in a year to maximise profit. The market for the products is not perfectly competitive so the firm faces a downward-sloping demand curve for both products. They are estimated to be: P1 = 100 - 0.1 x Q1 P2 = 250 - 0.5 x Q2 Where P1 and P2 are the selling prices for the two products in Fixed costs for the firm are 15,000 per year Variable costs for the two products are 8 per unit for product 1 and 45 per unit for product 2. Because of synergies in the production process, the annual production costs obtained by adding the fixed and variable costs are reduced by 0.1 x Q1 x Q2 Required: 1. Obtain a formula for the total annual revenue from producing and selling quantities Q1 and Q2.5 marks 2. Obtain a formula for the total annual cost of producing quantities Q1 and Q2. 5 marks 3. Hence find a formula for the annual profit of the firm 5 marks 4. Find the profit maximising quantities Q1 and Q2, and hence the profit maximising prices, P1 and P2 and the maximum profit. 10 marks Total: 25 marks

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