Question 2-4

Question 2-4 - Qsc=-0.70-2.16Psc+5.57Phy...

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Question 2-4. Show work as below: Qhy=4.57+0.55Psc-3.5Phy Profit=PQ-QC=Q(P-C)=(4.57+0.55Psc-3.5Phy)(Phy-Chy) 4.57Phy+0.55PscPhy-3.5Phy^2-4.57Chy-0.55PscChy+3.5PhyChy (ΔP/ΔPhy)=4.57+0.55psc-7Phy+3.5Chy=0 (7Phy/7)=(4.57+0.55Psc+3.5Chy)/7=0 Phy=0.65+0.08Psc+0.5Chy
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Unformatted text preview: Qsc=-0.70-2.16Psc+5.57Phy Qsc=-0.70-2.16Psc^2+5.57PhyPsc +0.70Csc+2.16PscCsc-5.57PhyCsc =-0.70-4.32+5.57Phy+2.16Csc=0 4.32Psc/4.32=(-0.70+5.57Phy+2.16Csc)/4.32 =-0.16+1.29Phy+0.5Csc Psc=-0.16+1.29 Phy+C/2 (Psc+0.16-C/2)/1.29=1.29Phy/1.29...
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