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Exhibit 7-1
A company manufactures two products. If it charges price p1 for product 1 and price p2 for product 2, it can sell quantities q1 = 55 − 3p1 + 2p2 and q2 = 75 + 2p1 − 2p2 for products 1 and 2, respectively. It costs the company $20 to produce a unit of product 1 and $65 to produce a unit of product 2.
-Refer to Exhibit 7-1.Suppose the company must produce a minimum of 20 units of each product.How many units of each product should the company produce in that case
What prices should it charge,to maximize profit
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