Best Orange Juice Company is located in Oman. The cost function for total orange juice production (x) is given by C(q)=0.25x2. Their orange juice is demanded only in Muscat (Muscat demand is 100-2P) and Salalah (Salalah demand is 100-4P). Therefore, the total demand is x-x+x. If the company can control the quantities supplied to each market, how many should it sell in each location to maximize total profits? What price would it charge in each location?
Best Orange Juice Company is located in Oman. The cost function for total orange juice production (x) is given by C(q)=0.25x2. Their orange juice is demanded only in Muscat (Muscat demand is 100-2P) and Salalah (Salalah demand is 100-4P). Therefore, the total demand is x-x+x. If the company can control the quantities supplied to each market, how many should it sell in each location to maximize total profits? What price would it charge in each location?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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