A company has two wings producing two products - Product 1 and Product 2. P and P2 are price per unit for Product 1 and Product 2 respectively. Similarly, q1 and q2 are the respective amount of units produced for Product 1 and Product 2. P and P2 are related to qi and g2 by the equations P = 155q2 + 26q – R92, P2 = 295q1 + 18q – 391- The total cost of production for the company is given by, C = 100q192. The total relative profit is R =total profit/total cost, where total profit =total revenue – total cost; and total revenue = ( Price per unit of product 1* quantity of product 1) + (Price per unit of product 2* quantity of product 2) a. Find the relative profit Ras a function of q1 and q2 and simplify the expression. b. Given that the company produces q1 units of Product 1 what amount of units q of Product 2 will maximize the total relative profit Rfor the company.
A company has two wings producing two products - Product 1 and Product 2. P and P2 are price per unit for Product 1 and Product 2 respectively. Similarly, q1 and q2 are the respective amount of units produced for Product 1 and Product 2. P and P2 are related to qi and g2 by the equations P = 155q2 + 26q – R92, P2 = 295q1 + 18q – 391- The total cost of production for the company is given by, C = 100q192. The total relative profit is R =total profit/total cost, where total profit =total revenue – total cost; and total revenue = ( Price per unit of product 1* quantity of product 1) + (Price per unit of product 2* quantity of product 2) a. Find the relative profit Ras a function of q1 and q2 and simplify the expression. b. Given that the company produces q1 units of Product 1 what amount of units q of Product 2 will maximize the total relative profit Rfor the company.
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.6P
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