A company has two wings producing two products - Product 1 and Product 2 . P1 and P2 are price per unit for Product 1 and Product 2respectively. Similarly, q1 and q2 are the respective amount of units produced for Product 1 and Product 2. Pj and P2 are related to qı and q2 bythe equationsP = 155q2 + 26q – q?92,P2 = 295q1 + 18q{ – 9ź91-The total cost of production for the company is given by,C = 100q142.The total relative profit is R =total profit/total cost , where total profit =total revenue – total cost; and total revenue = ( Price per unit of product1* 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 thecompany.c. Given that the company produces q2 units of Product 2 what amourofhits qProduct 1 will maximize the total relative profit Rfor thecompany.

Product 1: P1=155q2+26q22-q12q2 Product 2: P2=295q1+18q12-q22q1 Total Cost: C=100q1q2 Relative…

Answered: A company has two wings producing two…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A company produces and sells a consumer product and thus far has been able to control the volume of the product by varying the selling price. The company is seeking to maximize its net profit. It has been concluded that the relationship between price and demand, per month, is approximately D = 500 - 5p, where p is the price per unit in dollars. The fixed cost is $1,000 per month, and the variable cost is $20 per unit. Obtain the answer mathematically to the following questions: a.What is the optimal number of units that should be produced and sold per month? b.What is the maximum profit per month? c.What are the breakeven sales quantities and the range of profitable demand volume?
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You have just been employed as the quantitative analyst by a budget event organizing firm.Your task is to maximize the firm's total revenue.The admission fee to their weekend program for business students,"Board Room Discussion" is $10 and the average attendance is 1000 students.Analysis from the recent survey conducted by the marketing department show that every $1 reduction in the admission fee will attract 200 more students to attend.The records also show that every student who attends the event spends $5 on one of their publications. Required: i. State the total revenue function of the firm. ii. Estimate the admission fee that maximizes total revenue and total revenue at that price.
please answer the rest of the 3 questions thank you!!
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