5. A firm sells two products. The demand functions for two products are: q1 = 120-4p1 - p2 q2 = 90-2p1-3p2 where p; equals the price of product j in dollar and q; equals to demand (in thousands of units) for product j. a. Determine the price which should be charged for each product in order to maximize total revenue from the two products. b. How many units will be demanded of each product at these prices? c. What is maximum total revenue?
5. A firm sells two products. The demand functions for two products are: q1 = 120-4p1 - p2 q2 = 90-2p1-3p2 where p; equals the price of product j in dollar and q; equals to demand (in thousands of units) for product j. a. Determine the price which should be charged for each product in order to maximize total revenue from the two products. b. How many units will be demanded of each product at these prices? c. What is maximum total revenue?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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Transcribed Image Text:5. A firm sells two products. The demand functions for two products are:
q1 = 120-4p1 - p2
q2 = 90-2p1-3p2
where p; equals the price of product j in dollar and q; equals to demand (in thousands of
units) for product j.
a. Determine the price which should be charged for each product in order to maximize
total revenue from the two products.
b. How many units will be demanded of each product at these prices?
c. What is maximum total revenue?
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