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A company operates two plants which manufacture the same item and whose total cost functions are C₁ = 5.1 +0.03(q₁)² and C₂ = 7.1 +0.04(92)², where 91 and 92 are the quantities produced by each plant. The company is a monopoly. The total quantity demanded, q = 91 +92, is related to the price, p, by p = 800.04q. How much should each plant produce in order to maximize the company's profit?¹ 91 = i 92 = i ¹Adapted from M. Rosser and P. Lis, Basic Mathematics for Economists, 3rd ed. (New York: Routledge, 2016), p. 354.

A company operates two plants which manufacture the same item and whose total cost functions are C₁ = 5.1 +0.03(q₁)² and C₂ = 7.1 +0.04(92)², where 91 and 92 are the quantities produced by each plant. The company is a monopoly. The total quantity demanded, q = 91 +92, is related to the price, p, by p = 800.04q. How much should each plant produce in order to maximize the company's profit?¹ 91 = i 92 = i ¹Adapted from M. Rosser and P. Lis, Basic Mathematics for Economists, 3rd ed. (New York: Routledge, 2016), p. 354.

Calculus: Early Transcendentals
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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A company operates two plants which manufacture the same item and whose total cost functions are C₁ 5.1 + 0.03(9₁)² and C₂ 7.1 + 0.04(q2)², = where 9₁ and 92 are the quantities produced by each plant. The company is a monopoly. The total quantity demanded, q = 9₁ +92, is related to the price, p, by p = 80 -0.04g. 91 = = How much should each plant produce in order to maximize the company's profit?¹ 92 = ¹Adapted from M. Rosser and P. Lis, Basic Mathematics for Economists, 3rd ed. (New York: Routledge, 2016), p. 354.
Transcribed Image Text:A company operates two plants which manufacture the same item and whose total cost functions are C₁ 5.1 + 0.03(9₁)² and C₂ 7.1 + 0.04(q2)², = where 9₁ and 92 are the quantities produced by each plant. The company is a monopoly. The total quantity demanded, q = 9₁ +92, is related to the price, p, by p = 80 -0.04g. 91 = = How much should each plant produce in order to maximize the company's profit?¹ 92 = ¹Adapted from M. Rosser and P. Lis, Basic Mathematics for Economists, 3rd ed. (New York: Routledge, 2016), p. 354.
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