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Consider two firms facing the demand curve P=90-5Q, where Q Q₁+Q2. The firms' cost functions are and C₁ (Q1)=20+1501 C₂ (Q2) = 15+30Q2. Suppose that both firms have entered the industry. What is the joint profit-maximizing level of output? How much will each firm produce? Combined, the firms will produce ☐ units of output, of which Firm 1 will produce ☐ units and Firm 2 will produce ☐ units. (Enter a numeric response using a real number rounded to two decimal places.)

Consider two firms facing the demand curve P=90-5Q, where Q Q₁+Q2. The firms' cost functions are and C₁ (Q1)=20+1501 C₂ (Q2) = 15+30Q2. Suppose that both firms have entered the industry. What is the joint profit-maximizing level of output? How much will each firm produce? Combined, the firms will produce ☐ units of output, of which Firm 1 will produce ☐ units and Firm 2 will produce ☐ units. (Enter a numeric response using a real number rounded to two decimal places.)

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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Consider two firms facing the demand curve P=90-5Q, where Q = Q1 + Q₂. The firms' cost functions are and C₁ (Q1) = 20 +1501 C2 (Q2)=15+30Q2- Suppose that both firms have entered the industry. What is the joint profit-maximizing level of output? How much will each firm produce? Combined, the firms will produce ☐ units of output, of which Firm 1 will produce ☐ units and Firm 2 will produce ☐ units. (Enter a numeric response using a real number rounded to two decimal places.) Firm 1's output 18- Q 17- 16- 15 14- 13- 12 11- 10- 9- 8- 7- 6- 5- 4 3- 2- 1 0- 0 1 2 3 4 7 8 9 10 11 12 13 14 15 16 17 18 Firm 2's output
Transcribed Image Text:Consider two firms facing the demand curve P=90-5Q, where Q = Q1 + Q₂. The firms' cost functions are and C₁ (Q1) = 20 +1501 C2 (Q2)=15+30Q2- Suppose that both firms have entered the industry. What is the joint profit-maximizing level of output? How much will each firm produce? Combined, the firms will produce ☐ units of output, of which Firm 1 will produce ☐ units and Firm 2 will produce ☐ units. (Enter a numeric response using a real number rounded to two decimal places.) Firm 1's output 18- Q 17- 16- 15 14- 13- 12 11- 10- 9- 8- 7- 6- 5- 4 3- 2- 1 0- 0 1 2 3 4 7 8 9 10 11 12 13 14 15 16 17 18 Firm 2's output
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