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Unformatted text preview: critical values in this problem. a. H ( u,v,w ) = 2 u 2 + v 2-3 w 2 + 2 uv + 4 uw-2 vw . b. F ( x,y,z ) = 30 x 1 / 3 y 2 / 3-z (5 x + 8 y-400). c. G ( w,x,y,z ) = x 2 + 2 y 2 + 4 z 2-2 wx-5 wy-3 wz + 300 w . 5. A ﬁrm sells two competing products, A and B. The joint demand equations for these products are Q A = 80-3 2 P A + 2 P B and Q B = 60 + 2 P A-3 P B , where Q A and Q B are the weekly demand for products A and B, respectively, and P A and P B are the prices of these products. Find the prices that the ﬁrm should charge to maximize the ﬁrm’s revenue , the quantities that the ﬁrm sells at these prices and the (maximum) revenue the ﬁrm generates. Justify your claim that the prices you found yield the maximum revenue....
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This note was uploaded on 09/16/2011 for the course ECON 11B taught by Professor Binici during the Spring '08 term at UCSC.
- Spring '08