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    Profit Maximization

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    The cost to produce each of two products is dependent on the quanity in order to maximize profits.

    product a sells for $10,000 a unit and product 2 sells for $12,000 a unit. Fixed cost is $2,000 for each product find the optimal points.

    c1=x1+x2(in thousands of dollars)
    c2=2x2+x1(in thousands of dollars)

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    For profit maximization marginal cost must equal marginal revenue. It is very clear that marginal revenue for ...

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    The solution provides excellent answer to the problem below.