Maximizing Profit A monopolist manufactures and sells two competing products, I and II , that cost $ 30 and $ 20 per unit, respectively, to produce. The revenue from marketing x units of product I and y units product II is 98 x + 112 y − 0.04 x y − 0.1 x 2 − 0.2 y 2 . Find the values of x and y that maximize the monopolist’s profit.
Maximizing Profit A monopolist manufactures and sells two competing products, I and II , that cost $ 30 and $ 20 per unit, respectively, to produce. The revenue from marketing x units of product I and y units product II is 98 x + 112 y − 0.04 x y − 0.1 x 2 − 0.2 y 2 . Find the values of x and y that maximize the monopolist’s profit.
Solution Summary: The author calculates the monopolist's profits when it manufactures and sells two competing products.
Maximizing Profit A monopolist manufactures and sells two competing products,
I
and
II
, that cost
$
30
and
$
20
per unit, respectively, to produce. The revenue from marketing
x
units of product
I
and
y
units product
II
is
98
x
+
112
y
−
0.04
x
y
−
0.1
x
2
−
0.2
y
2
. Find the values of
x
and
y
that maximize the monopolist’s profit.
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, calculus and related others by exploring similar questions and additional content below.
Solve ANY Optimization Problem in 5 Steps w/ Examples. What are they and How do you solve them?; Author: Ace Tutors;https://www.youtube.com/watch?v=BfOSKc_sncg;License: Standard YouTube License, CC-BY
Types of solution in LPP|Basic|Multiple solution|Unbounded|Infeasible|GTU|Special case of LP problem; Author: Mechanical Engineering Management;https://www.youtube.com/watch?v=F-D2WICq8Sk;License: Standard YouTube License, CC-BY