Essay
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.
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