Question: Please show steps involved Problem 4 Consider a firm that sells desktops, D, and laptops, L. The inverse demand functions it faces for both products
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Problem 4 Consider a firm that sells desktops, D, and laptops, L. The inverse demand functions it faces for both products are PP(D, L) = 2500 - 20D + 5L PL(D, L) = 5000 - 30L + 10D Its cost function is C(D, L) = 100, 000 + 200D + 300L (a) What are the revenue function for desktops, R"(D, L), and for laptops, R"(D, L), and the total revenue function, R(D, L)? (b) Write the profit maximization problem the firm faces. (c) Use the first order conditions of the problem to find the quantities of desktops and laptops supplied by the firm. (d) Check that the second order conditions for a maximum are met at the supplied quantities. (e) Find the values for PDx, pix, RD*, RL*, R*, (*, and *
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