ACME Thingamjigs ltd. produces two types of thingamajigs, Type 1 and Type 2. The demand for equations for these Thingamajigs are 91 120 1.5p₁ + P₂ and 92 = 100 + 2p1 - 3p2 where p₁ and på are the prices that ACME sets for Type 1 and Type 2 Thingamajigs, respectively, and ₁ and 2 are the corresponding weekly demands for these goods. ACME's weekly production cost is given by c = 40q₁ +30q2 + 2000. The prices that ACME should set to maximize their weekly profit are n*
ACME Thingamjigs ltd. produces two types of thingamajigs, Type 1 and Type 2. The demand for equations for these Thingamajigs are 91 120 1.5p₁ + P₂ and 92 = 100 + 2p1 - 3p2 where p₁ and på are the prices that ACME sets for Type 1 and Type 2 Thingamajigs, respectively, and ₁ and 2 are the corresponding weekly demands for these goods. ACME's weekly production cost is given by c = 40q₁ +30q2 + 2000. The prices that ACME should set to maximize their weekly profit are n*
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter11: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
Problem 13CQ
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![**ACME Thingamajigs Ltd. Production and Profit Maximization**
ACME Thingamajigs Ltd. produces two types of thingamajigs, Type 1 and Type 2. The demand equations for these thingamajigs are:
\[ q_1 = 120 - 1.5p_1 + p_2 \]
\[ q_2 = 100 + 2p_1 - 3p_2 \]
where \( p_1 \) and \( p_2 \) are the prices that ACME sets for Type 1 and Type 2 Thingamajigs, respectively, and \( q_1 \) and \( q_2 \) are the corresponding weekly demands for these goods.
ACME's weekly production cost is given by:
\[ c = 40q_1 + 30q_2 + 2000 \]
The prices that ACME should set to *maximize* their weekly profit are \( p_1^* = \) [Select] and \( p_2^* = \) [Select], and their maximum weekly profit is \( \pi^* = \) [Select].](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcb215e6b-9552-449e-af55-e4170ca85711%2Fbcf0394f-0eaa-47b9-9535-35ecb0e03f73%2F1y3eq9b_processed.png&w=3840&q=75)
Transcribed Image Text:**ACME Thingamajigs Ltd. Production and Profit Maximization**
ACME Thingamajigs Ltd. produces two types of thingamajigs, Type 1 and Type 2. The demand equations for these thingamajigs are:
\[ q_1 = 120 - 1.5p_1 + p_2 \]
\[ q_2 = 100 + 2p_1 - 3p_2 \]
where \( p_1 \) and \( p_2 \) are the prices that ACME sets for Type 1 and Type 2 Thingamajigs, respectively, and \( q_1 \) and \( q_2 \) are the corresponding weekly demands for these goods.
ACME's weekly production cost is given by:
\[ c = 40q_1 + 30q_2 + 2000 \]
The prices that ACME should set to *maximize* their weekly profit are \( p_1^* = \) [Select] and \( p_2^* = \) [Select], and their maximum weekly profit is \( \pi^* = \) [Select].
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