In monopolistic competition, assume that a producer offers two different brands of product for which the demand functions are: 8Q1 = 112 – 2P; 4Q2 = 96 – 2P2 and the cost function is given as TC = 2Q,² + 10Q,Q2 + 2Q2². Determine the profit maximizing outputs and the profit at the optimal outputs.

In monopolistic competition, assume that a producer offers two different brands of product for which the demand functions are: 8Q1 = 112 – 2P; 4Q2 = 96 – 2P2 and the cost function is given as TC = 2Q,² + 10Q,Q2 + 2Q2². Determine the profit maximizing outputs and the profit at the optimal outputs.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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This question is from my Bus135 coures . I need help to slove this problem.

2 In monopolistic competition, assume that a producer offers two different brands of product for
which the demand functions are: 8Q1 = 112 - 2P; 4Q2 = 96 – 2P2 and the cost function is
given as TC = 2Q1² + 10Q,Q2 + 2Q2?. Determine the profit maximizing outputs and the profit
at the optimal outputs.

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