C. A travel company is the only provider of holidays (of one week's duration) to two private island resort X and resort Y. The demand equations for such holidays. are given by; ¶ x = 200 - Px1 y = 100 - Py Where x andy are numbers of week-long holidays at X and Y demanded (respectively). andPx, Pyare (respectively) the prices of these holidays. The company's joint total cost function (that is, the cost of providing x holidays in X-and-y-holidays in Y) is ¶ 2x² + y² + 2xy Find an expression in terms of x-and-y for the profit the company obtains from selling. these holidays. Determine the numbers of x and y of holidays in resorts X and Y-that- will maximize the company's profit.
C. A travel company is the only provider of holidays (of one week's duration) to two private island resort X and resort Y. The demand equations for such holidays. are given by; ¶ x = 200 - Px1 y = 100 - Py Where x andy are numbers of week-long holidays at X and Y demanded (respectively). andPx, Pyare (respectively) the prices of these holidays. The company's joint total cost function (that is, the cost of providing x holidays in X-and-y-holidays in Y) is ¶ 2x² + y² + 2xy Find an expression in terms of x-and-y for the profit the company obtains from selling. these holidays. Determine the numbers of x and y of holidays in resorts X and Y-that- will maximize the company's profit.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![C. A travel company is the only provider of holidays (of one week's duration) to two.
private island resort X and resort Y. The demand equations for such holidays.
are given by;
¶
x = 200
Px¶
y = 100 - Py
-
Where x-and-y are numbers of week-long holidays at X and Y demanded (respectively).
andPx,Py are (respectively) the prices of these holidays. The company's joint-total-cost-
function (that is, the cost of providing x holidays in X-and-y-holidays in Y) is ¶
2x² + y² + 2xy¶
Find an expression in terms of x and y for the profit the company obtains from selling.
these holidays. Determine the numbers of x-and-y of holidays in resorts X and Y-that-
will maximize the company's profit.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd75aee6a-ef92-4ae1-804b-c1fad4058e76%2F351189eb-697a-42c8-8e21-3ff7af969561%2Flus2xgd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:C. A travel company is the only provider of holidays (of one week's duration) to two.
private island resort X and resort Y. The demand equations for such holidays.
are given by;
¶
x = 200
Px¶
y = 100 - Py
-
Where x-and-y are numbers of week-long holidays at X and Y demanded (respectively).
andPx,Py are (respectively) the prices of these holidays. The company's joint-total-cost-
function (that is, the cost of providing x holidays in X-and-y-holidays in Y) is ¶
2x² + y² + 2xy¶
Find an expression in terms of x and y for the profit the company obtains from selling.
these holidays. Determine the numbers of x-and-y of holidays in resorts X and Y-that-
will maximize the company's profit.
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