A manufacturer produces products A and B for which the average costs of production are constant at 3 and 5 (dollars per unit),respectively.The quantities
,
of A and B that can be sold each week are given by the joint-demand functions
= 10 -
+
and
= 12 +
- 3
where
and
are the prices (in dollars per unit)of A and B,respectively.Determine the prices of A and B at which the manufacturer can maximize profit.

Question

A manufacturer produces products A and B for which the average costs of production are constant at 3 and 5 (dollars per unit),respectively.The quantities  
,  
of A and B that can be sold each week are given by the joint-demand functions  
= 10 -  
+  
and  
= 12 +  
- 3  
where  
and  
are the prices (in dollars per unit)of A and B,respectively.Determine the prices of A and B at which the manufacturer can maximize profit.

Quizplus · Accepted Answer

The Answer of A manufacturer produces products A and B for which the average costs of production are constant at 3 and 5 (dollars per unit),respectively.The quantities  
,  
of A and B that can be sold each week are given by the joint-demand functions  
= 10 -  
+  
and  
= 12 +  
- 3  
where  
and  
are the prices (in dollars per unit)of A and B,respectively.Determine the prices of A and B at which the manufacturer can maximize profit.

A Manufacturer Produces Products a and B for Which the Average