331-ch11-tut - ECON 331 Tutorial Questions 2 Variable...

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ECON 331 Tutorial Questions: 2 Variable optimization Make Sure to check second order conditions for all solutions MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) A monopolist produces two products, A , and B . The joint-cost function is c = 5 q A + 3 q B + 5000 where c is the total cost of producing q A units of A and q B units of B . the demand functions for these products are given by p A = 205 - 2 q A - q B and p B = 153 - q A - q B , where p A and p B are the prices of A and B , respectively. The number of units of A and the number of units B that should be sold to maximize the monopolist's profit is A) 75 units of A and 100 units of B. B) 15 units of A and 25 units of B. C) 50 units of A and 75 units of B. D) 10 units of A and 15 units of B . E) 25 units of A and 50 units of B. 1) SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 2) Determine the critical points of
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331-ch11-tut - ECON 331 Tutorial Questions 2 Variable...

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