3. A public utility set up two electric generating facilities: Q₁ kilowatts are produced at facility 1 and Q₂ kilowatts are produced at facility 2 (so Q = Q₁ + Q₂. The costs of producing electricity at each facility are estimated as C₁Q₁ = 8000 + 6Q² and C₂Q₂ = 6000 + 3Q²/². Determine the profit-maximizing quantities produced at the two facilities, and the price.

3. A public utility set up two electric generating facilities: Q₁ kilowatts are produced at facility 1 and Q₂ kilowatts are produced at facility 2 (so Q = Q₁ + Q₂. The costs of producing electricity at each facility are estimated as C₁Q₁ = 8000 + 6Q² and C₂Q₂ = 6000 + 3Q²/². Determine the profit-maximizing quantities produced at the two facilities, and the price.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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