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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   What are the profit-maximizing prices for the two goods?      Multiple Choice   PX = $25.60, PY = $20.50   PX = $30, PY = $35   PX = $50, PY = $45   PX = $11.20, PY = $42.70

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   What are the profit-maximizing prices for the two goods?      Multiple Choice   PX = $25.60, PY = $20.50   PX = $30, PY = $35   PX = $50, PY = $45   PX = $11.20, PY = $42.70

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

 

What are the profit-maximizing prices for the two goods? 

 

 

Multiple Choice
  •  

    PX = $25.60, PY = $20.50

  •  

    PX = $30, PY = $35

  •  

    PX = $50, PY = $45

  •  

    PX = $11.20, PY = $42.70

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