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Exhibit 7-1 A Company Manufactures Two Products. If It Charges Price P1

question 7

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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


Definitions:

Benign Tumor

A non-cancerous growth in the body that does not invade nearby tissues or spread to other parts of the body.

Diagnostic Test

A diagnostic test is a medical procedure or assay used to identify the presence or absence of a disease or condition in individuals based on specific markers or symptoms.

Malignant Cyst

A growth that can be cancerous, potentially spreading to other parts of the body, unlike benign cysts.

On-time Rates

A measure often used in transportation or logistics industries to indicate the percentage of services or deliveries completed on schedule.

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