1. NJ Petroleum Company's Profit is a function of Q1 = heating oil and Q2 =...

 

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1. NJ Petroleum Company's Profit is a function of Q1 = heating oil and Q2 = gasoline. N = -60 +140*Q1 120*Q2 -10*Q12-8*Q2-5*01*Q2. Because of contractual obligations and environmental regulations, NJ must meet the following constraint: .5*Q1 + 2*Q2 = 30. What is the profit maximizing Profit when NJ chooses the optimal amounts of Q1 and Q2? 2. Consider the long run total cost function LRTC = 30*Q - .006*Q2 +.00006*Q3. What is LRAC when it is at its minimum? You can use a Spreadsheet, but I recommend using Solver to answer this question. %3D 3. Consider the demand function Q = 900*P-2.0, Suppose the firm is considering reducing price from P = 4.5 to P = 4.4. What is the marginal effect on quantity demanded AQ/AP from this price reduction? Use a spreadsheet to answer this question. 1. NJ Petroleum Company's Profit is a function of Q1 = heating oil and Q2 = gasoline. N = -60 +140*Q1 120*Q2 -10*Q12-8*Q2-5*01*Q2. Because of contractual obligations and environmental regulations, NJ must meet the following constraint: .5*Q1 + 2*Q2 = 30. What is the profit maximizing Profit when NJ chooses the optimal amounts of Q1 and Q2? 2. Consider the long run total cost function LRTC = 30*Q - .006*Q2 +.00006*Q3. What is LRAC when it is at its minimum? You can use a Spreadsheet, but I recommend using Solver to answer this question. %3D 3. Consider the demand function Q = 900*P-2.0, Suppose the firm is considering reducing price from P = 4.5 to P = 4.4. What is the marginal effect on quantity demanded AQ/AP from this price reduction? Use a spreadsheet to answer this question.

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answers 1 Differentiate the profit fucntion wrt Q2 and set it equal to 0 120 16Q2 05Q1 0 Substi... View the full answer