Phillips Industries manufactures a certain product that can sold directly to retail outlets or to the Superior Company for further processing andeventual sale as a completely different product. The demand function for each of these markets isRetail Outlets: P₁ = 120-Q₁where P₁ and P2 are the prices charged and Q₁ and Q2 are the quantities sold in the respective markets. Phillips' total cost function for themanufacture of this product isTC = 10 +8(Q₁ + Q2)What is Phillips' total profit function?O 119Q₁ — Q₁² +30Q2 - Q₂² - 10-▶O 112Q₁ − Q₁² +32Q2 − Q₂²--Superior Company: P₂ = 40 - Q₂CO 112Q1-Q₁² +32Q2 - Q₂² - 10DO 120Q₁-Q₁² +40Q2 - Q₂² - 10The profit-maximizing levels of price and output for the retail outlets market areThe profit-maximizing levels of price and output for the Superior company areAt these levels of output, the marginal revenue in the retail outlets market is$per unit andper unit andunits respectively.What are the total profits if Phillips is effectively able to charge different prices in the two markets?units respectively.and the marginal revenue in the Superior Company market isIf Phillips is required by law to charge the same per unit in each market, the profit-maximizing level of price and output are $units, respectively. Total profits in this condition are $per unit and

Total profit (Π) is obtained from the formula: Π = total revenue (TR) - total cost (TC)

ventual sale as a completely different product. The demand function for each of these markets is Retail Outlets: P₁ = 120 - Q₁ here P₁ and P₂ are the prices charged and Q₁ and Q2 are the quantities sold in the respective markets. Phillips' total cost function for t anufacture of this product is TC 10+8(Q₁ + Q2) Superior Company: P₂ = 40 - Q₂ What is Phillips' total profit function?

ventual sale as a completely different product. The demand function for each of these markets is Retail Outlets: P₁ = 120 - Q₁ here P₁ and P₂ are the prices charged and Q₁ and Q2 are the quantities sold in the respective markets. Phillips' total cost function for t anufacture of this product is TC 10+8(Q₁ + Q2) Superior Company: P₂ = 40 - Q₂ What is Phillips' total profit function?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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