Business, 16.07.2021 17:30 brandonshaw16

A monopolistic company has to spend exactly $3000 as total cost for the production of a number of Basic Science and Mathematics textbooks for three schools. The Basic Science textbook sells at P1 = 455 – Q1 – Q2 and the Mathematics textbook at P2 = 910 – Q1 – 4Q2 where P1 and P2 denote the prices; Q1 and Q2 denote the number of Basic science and mathematics textbooks produced respectively. The joint cost of producing these textbooks is given as TC = 5Q1 + 10Q2 (i) Find the maximum profit the producer can make (ii) Estimate the new profit if the company decides to reduce the total cost by $50 (Assume that 2nd order conditions are satisfied)

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A monopolistic company has to spend exactly $3000 as total cost for the production of a number of Ba...

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