A firm produces two products, "f" and "g", and the production process is such that one unit of f is always obtained with one unit of "g". If the demand curves for "f" and "g" are estimated to be: Qf = 300 - Pf so that MRf = 300 - 2Qf) and Qg = 400 - 2Pg so that MRg = 200 - Qg) and the marginal cost of production is MC = 50 + 3Qj, where Qj consists of one unit of each product, the firm will maximize profits if it sells 100 units of "f" and 100 units of "j".
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Q1: Where there is no external market for
Q3: Where there is a perfectly competitive external
Q4: Markup on price is the proportion of
Q5: Where there is a perfectly competitive external
Q6: Second-degree price discrimination is the practice of
Q7: Price discrimination allows different prices for the
Q8: Markup on cost is the proportion of
Q9: In the case of joint products produced
Q10: In the case of joint products produced
Q11: Where there is a perfectly competitive external
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