The quantity of a product demanded by consumers is a function of its price. The quantity of one product demanded may also depend on the price of other products. For example, if the only chocolate shop in town (a monopoly) sells milk and dark chocolates, the price it sets for each affects the demand of the other. The quantities demanded, q₁ and 92, of two products depend on their prices, p₁ and p2, as follows: 91 = 140-3p1 - 2p2 92 = 160 - 2p1 - 3p2. If one manufacturer sells both products, how should the prices be set to generate the maximum possible revenue? What is that maximum possible revenue? Enter the exact answers. P₁ = i P2 = i The maximum revenue is i

The quantity of a product demanded by consumers is a function of its price. The quantity of one product demanded may also depend on the price of other products. For example, if the only chocolate shop in town (a monopoly) sells milk and dark chocolates, the price it sets for each affects the demand of the other. The quantities demanded, q₁ and 92, of two products depend on their prices, p₁ and p2, as follows: 91 = 140-3p1 - 2p2 92 = 160 - 2p1 - 3p2. If one manufacturer sells both products, how should the prices be set to generate the maximum possible revenue? What is that maximum possible revenue? Enter the exact answers. P₁ = i P2 = i The maximum revenue is i

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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