The profit function of our firm is a piecewise function depending on 2 goods:II(Q₁, Q₂) = AQ² - 3Q² + Q1Q2 + 35Q₁ + 82Q2 − 245 if Q₁ ≤ 5Unfortunately, we don't know have any information about the profit function when Q₁>5. As we don't have any information when the quantity produced ofgood 1 is greater than 5, we use the total differential equation to make estimations when Q1>5. Currently, we are producing 5 units of good 1 and 10 units ofgood 2.a) What is the value of A knowing that our estimation of profit, using total differential equation, is 500 when Q₁=7 and Q₂=10?A =b) Assuming that we still produce 5 units of good 1 and 10 units of good 2. Using total differential equation, how many units of good 1 should we produce intotal to increase profit by 38% if we decrease production of good 2 to 8 units?(If needed, round your answer to 2 digits after the decimal point).Q₁=

Profit function : π = AQ12 - 3Q22 + Q1Q2 + 35Q1 + 82Q2 - 245 Original profit at Q1 = 5 , Q2= 10 π1…

The profit function of our firm is a piecewise function depending on 2 goods: TI(Q₁, Q₂) = AQ² - 30 +0102 + 3501 +8202 - 245 if Q₁ ≤ 5 Unfortunately, we don't know have any information about the profit function when Q₁>5. As we don't have any information when the quantity produced of good 1 is greater than 5, we use the total differential equation to make estimations when Q1>5. Currently, we are producing 5 units of good 1 and 10 units good 2. a) What is the value of A knowing that our estimation of profit, using total differential equation, is 500 when Q₁=7 and Q₂=10? A = b) Assuming that we still produce 5 units of good 1 and 10 units of good 2. Using total differential equation, how many units of good 1 should we produce total to increase profit by 38% if we decrease production of good 2 to 8 units? (If needed, round your answer to 2 digits after the decimal point). Q₁=

The profit function of our firm is a piecewise function depending on 2 goods: TI(Q₁, Q₂) = AQ² - 30 +0102 + 3501 +8202 - 245 if Q₁ ≤ 5 Unfortunately, we don't know have any information about the profit function when Q₁>5. As we don't have any information when the quantity produced of good 1 is greater than 5, we use the total differential equation to make estimations when Q1>5. Currently, we are producing 5 units of good 1 and 10 units good 2. a) What is the value of A knowing that our estimation of profit, using total differential equation, is 500 when Q₁=7 and Q₂=10? A = b) Assuming that we still produce 5 units of good 1 and 10 units of good 2. Using total differential equation, how many units of good 1 should we produce total to increase profit by 38% if we decrease production of good 2 to 8 units? (If needed, round your answer to 2 digits after the decimal point). Q₁=

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter10: Monopolistic Competition And Oligopoly

Section: Chapter Questions

Problem 16CTQ: Would you rather have efficiency or variety? That is, one opportunity cost of the variety of...

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1. describe the marginal condition for efficiency.
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