American Export Import Shipping Company operates a general cargo carrier service between New York and several Western European ports. It hauls two major categories of freight: manufactured items and semimanufactured raw materials. The demand functions for these two classes of goods are;P1=100-2Q1;P2=80-Q2;where Q1= tons of freight moved. The total cost function for American is;TC=20+4(Q1+Q2);b. What are the profit maximizing levels of price and output for the two freight categories?
Paper#29620 | Written in 18-Jul-2015Price : $22