A company operates two plants which manufacture the same item and whose total cost functions are C₁ = 8 +0.03q and C₂ = 3 +0.0492, where 9₁ and 92 are the quantities produced by each plant. The total quantity demanded, q = 9₁ +92, is related to the price, p, by p = 70 -0.04g. How much should each plant produce in order to maximize the company's profit? 91 = 92 Adapted from M. Rosser, Basic Mathematics for Economists, p. 318 (New York: Routledge, 1993).
A company operates two plants which manufacture the same item and whose total cost functions are C₁ = 8 +0.03q and C₂ = 3 +0.0492, where 9₁ and 92 are the quantities produced by each plant. The total quantity demanded, q = 9₁ +92, is related to the price, p, by p = 70 -0.04g. How much should each plant produce in order to maximize the company's profit? 91 = 92 Adapted from M. Rosser, Basic Mathematics for Economists, p. 318 (New York: Routledge, 1993).
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
Related questions
Question
Transcribed Image Text:A company operates two plants which manufacture the same item and whose total cost functions are
C₁ = 8 +0.03q and C₂ = 3+0.04q2,
where 9₁ and 92 are the quantities produced by each plant. The total quantity demanded, q = 9₁ +92, is related to the price, p, by
p = 70 -0.04g.
How much should each plant produce in order to maximize the company's profit?
91 =
92
Adapted from M. Rosser, Basic Mathematics for Economists, p. 318 (New York: Routledge, 1993).
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 3 images
Recommended textbooks for you
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Advanced Engineering Mathematics
Advanced Math
ISBN:
9780470458365
Author:
Erwin Kreyszig
Publisher:
Wiley, John & Sons, Incorporated
Numerical Methods for Engineers
Advanced Math
ISBN:
9780073397924
Author:
Steven C. Chapra Dr., Raymond P. Canale
Publisher:
McGraw-Hill Education
Introductory Mathematics for Engineering Applicat…
Advanced Math
ISBN:
9781118141809
Author:
Nathan Klingbeil
Publisher:
WILEY
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
