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A firm sells two goods (X and Y) that are related in consumption. The estimated demand and cost conditions are:   PX = 20 − 0.1QX− 0.05QY PY = 70−0.3QY−0.1QX MCX = 1 + 0.1QX MCY = 2 + 0.25QY MRX = 20 − 0.2QX− 0.05QY MRY = 70 −0.6QY− 0.1QX What are the profit-maximizing levels of output for the two goods?   a. QX = 51, QY = 74 b. QX = 41, QY = 24 c. QX = 20, QY = 10 d. None of the choices are correct e.

A firm sells two goods (X and Y) that are related in consumption. The estimated demand and cost conditions are:   PX = 20 − 0.1QX− 0.05QY PY = 70−0.3QY−0.1QX MCX = 1 + 0.1QX MCY = 2 + 0.25QY MRX = 20 − 0.2QX− 0.05QY MRY = 70 −0.6QY− 0.1QX What are the profit-maximizing levels of output for the two goods?   a. QX = 51, QY = 74 b. QX = 41, QY = 24 c. QX = 20, QY = 10 d. None of the choices are correct e.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A firm sells two goods (X and Y) that are related in consumption. The estimated demand and cost conditions are:

 

PX = 20 − 0.1QX− 0.05QY

PY = 70−0.3QY−0.1QX

MCX = 1 + 0.1QX

MCY = 2 + 0.25QY

MRX = 20 − 0.2QX− 0.05QY

MRY = 70 −0.6QY− 0.1QX

What are the profit-maximizing levels of output for the two goods?

 

a.

QX = 51, QY = 74

b.

QX = 41, QY = 24

c.

QX = 20, QY = 10

d.

None of the choices are correct

e.
independent
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