A Manufacturer Produces Products a and B for Which the Average

question 25

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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Definitions:

Chain Restaurants

Restaurants that are part of a series or network, offering a similar dining experience across multiple locations.

Online Ordering

The process of purchasing goods or services via the Internet, often through vendor websites or applications.

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The absence of prior exposure or familiarity with specific tasks, situations, or fields of endeavor.

Running

The action or activity of moving swiftly on foot, typically at a speed where both feet are off the ground simultaneously at regular intervals.