Rad Designs sells two kinds of sweatshirts that compete with one another. Their demand functions are expressed by the following relationships: 91 = 78 – 6p1 – 3p2 %D 92%3D 66 - Зр, — бр2 Where p, and p2 are the prices of the sweatshirts in multiples of $10 and q, and q2 are the quantities of the sweatshirts demanded, in hundreds of units. a. Find the formula for total revenue in terms of p, and P2 note: R = P1q1 +P292 %3D b. What prices p, and p2 should be charged for each product in order to maximize revenue? c. How many units of each will be demanded? d. What is the maximum total revenue?

Rad Designs sells two kinds of sweatshirts that compete with one another. Their demand functions are expressed by the following relationships: 91 = 78 – 6p1 – 3p2 %D 92%3D 66 - Зр, — бр2 Where p, and p2 are the prices of the sweatshirts in multiples of $10 and q, and q2 are the quantities of the sweatshirts demanded, in hundreds of units. a. Find the formula for total revenue in terms of p, and P2 note: R = P1q1 +P292 %3D b. What prices p, and p2 should be charged for each product in order to maximize revenue? c. How many units of each will be demanded? d. What is the maximum total revenue?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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