MatBi is a firm that produces three kinds of product. 01. 02. and 03. MatBi's cost...

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MatBi is a firm that produces three kinds of product. 01. 02. and 03. MatBi's cost function is given by: C = 202 + 202 + 2Q2 -Q,Q2-Q1Q3-Q2Q3 1 2 3 where C = total cost; Qi quantity of product i (i = 1,2,3 in millions of units) MatBi tries to maximize its profit, but because of the tight competition, they can only follow the existing price in the market for its products. The current prices of product 1, 2, and 3 (in US Dollar) are 2, 18, and 5 respectively. a. How many product 1, 2, and 3 that MatBi needs to produce to maximize its profit? b. Show that the quantity of product 1, 2, and 3 at point (a) will give MatBi a maximum profit. (10 points) c. Calculate the maximum profit of MatBi. Make sure the units are correct. MatBi is a firm that produces three kinds of product. 01. 02. and 03. MatBi's cost function is given by: C = 202 + 202 + 2Q2 -Q,Q2-Q1Q3-Q2Q3 1 2 3 where C = total cost; Qi quantity of product i (i = 1,2,3 in millions of units) MatBi tries to maximize its profit, but because of the tight competition, they can only follow the existing price in the market for its products. The current prices of product 1, 2, and 3 (in US Dollar) are 2, 18, and 5 respectively. a. How many product 1, 2, and 3 that MatBi needs to produce to maximize its profit? b. Show that the quantity of product 1, 2, and 3 at point (a) will give MatBi a maximum profit. (10 points) c. Calculate the maximum profit of MatBi. Make sure the units are correct.

Answer rating: 100% (QA)

a Cost CQ1 Q2 Qs 2Q 2Q3 2Q3 Q1Q2 Q1Q3 Q2Q3 With price... View the full answer