A firm in the competitive market produces two goods, 1 and 2. The firm face a cost function C(q1,92) = 4q? + 4q3, where q1 and q2 are the quantity of good 1 and 2 produced by the firm respectively. The price of good 1 is 8 and the price of good 2 is 4. What is the profit maximizing production quantity for the firm? a. q1 = 1, q2 = O b. q1 = 1, 92 = 1 c. 91 = , 92 = 1 d. q1 = 0, q2 = 0

A firm in the competitive market produces two goods, 1 and 2. The firm face a cost function C(q1,92) = 4q? + 4q3, where q1 and q2 are the quantity of good 1 and 2 produced by the firm respectively. The price of good 1 is 8 and the price of good 2 is 4. What is the profit maximizing production quantity for the firm? a. q1 = 1, q2 = O b. q1 = 1, 92 = 1 c. 91 = , 92 = 1 d. q1 = 0, q2 = 0

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 9E

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