The total cost and demand functions for two goods X and Y are given by the equations TC=10−6x+5y ; \( P_x = 6 - 2x \) , \( P_y = 25 - 0.1y \) ,where…
BBA Business Mathematics II · 2024 · Solved Question with Answer
The total cost and demand functions for two goods X and Y are given by the equations
TC=10−6x+5y ;\( P_x = 6 - 2x \),\( P_y = 25 - 0.1y \) ,where x and y are the number of units of the first goods and second goods respectively.
a. Write down the equations for total revenue and total profit.
b. Determine the number of units of each good which should be sold to maximize revenue. Calculate the maximum revenue and prices of each good under revenue maximizations.
c. Determine the number of units of each good which should be bought and sold to maximize profits.d. Calculate the maximum profit, prices of each good and total revenue under profit maximization.