Two local ready-mix cement manufacturers, H and T, have combined demand given by Q = 105 − P. Their total costs are given by TCH = 5QH + 0.5QH^2, and TCT = 5QT + 0.5QT^2. If they successfully collude, what is their maximum joint profits?

Two local ready-mix cement manufacturers, H and T, have combined demand given by Q = 105 − P. Their total costs are given by TCH = 5QH + 0.5QH^2, and TCT = 5QT + 0.5QT^2. If they successfully collude, what is their maximum joint profits?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Two local ready-mix cement manufacturers, H and T, have combined demand given by Q = 105 − P.

Their total costs are given by

TC_H = 5Q_H + 0.5Q_H^2, and

TC_T = 5Q_T + 0.5Q_T^2.

If they successfully collude, what is their maximum joint profits?

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