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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 is required by regulation to charge the same price for both products.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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