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Revenue Function Assignment | Homework For You

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February 22nd, 2020

Consider a firm that sells desktops, D, and laptops, L. The inverse demand functions it faces for both products are

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PD(D, L) = 2500 – 20D + 5L PL(D, L) = 5000 – 30L + 10D Its cost function is C(D, L) = 100,000 + 200D + 300LHomework For You

(a) What are the revenue function for desktops, RP(D, L), and for laptops, R'(D, L), and the total revenue function, R(DL)?

(b) Write the profit maximization problem the firm faces.

(c) Use the first order conditions of the problem to find the quantities of desktops and laptops supplied by the firm. Get Economics homework help today

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