A company operates two plants which manufacture the same item and whose total cost functions are C1=8.5+0.02q(subscript 1)^2 and
C2=4.8+0.04q(subscript 2) ^2
where q1 and q2 are the quantities produced by each plant.
The total quantity demanded, q=q(subscript 1)+q(subscript 2) , is related to the price, p , by p=50−0.04q.
How much should each plant produce in order to maximize the company's profit?
C2=4.8+0.04q(subscript 2) ^2
where q1 and q2 are the quantities produced by each plant.
The total quantity demanded, q=q(subscript 1)+q(subscript 2) , is related to the price, p , by p=50−0.04q.
How much should each plant produce in order to maximize the company's profit?