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) andP,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 inY) is 2x² + y² + 2xy Find an expression in terms of x and y for the profit the company obtains from selling
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) andP,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 inY) is 2x² + y² + 2xy Find an expression in terms of x and y for the profit the company obtains from selling
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Answer all of question C
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)
andP,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 iny) 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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