. Given that Q = F(P), maximize profits by (a) finding the inverse function P =...

 

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. Given that Q = F(P), maximize profits by (a) finding the inverse function P = = f(Q), (b) using Cramer's rule for the first-order condition, and (c) using the Hessian for the second-order condition. The demand functions and total cost function are Q₁ = 100-3P₁ +2P2 Q₂ = 75 +0.5P₁ - P₂ TC = Q1 +2Q1 Q₂ + Q ² where Q₁ and Q₂ are substitute goods, as indicated by the opposite signs for P₁ and P₂ in each equation (i.e., an increase in P₂ will increase demand for Q₁ and an increase in P₁ will increase demand for Q₂). onging . Given that Q = F(P), maximize profits by (a) finding the inverse function P = = f(Q), (b) using Cramer's rule for the first-order condition, and (c) using the Hessian for the second-order condition. The demand functions and total cost function are Q₁ = 100-3P₁ +2P2 Q₂ = 75 +0.5P₁ - P₂ TC = Q1 +2Q1 Q₂ + Q ² where Q₁ and Q₂ are substitute goods, as indicated by the opposite signs for P₁ and P₂ in each equation (i.e., an increase in P₂ will increase demand for Q₁ and an increase in P₁ will increase demand for Q₂). onging