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# A firm can sell its products in two countries. Quantity demanded in the first country is given by?

π =99/2-1/2p

and in the second country

π = 99 β π

The firmβs total output is q+Q which it can produce at a total cost (TC) of

ππΆ = 50π + 50π + ππ + 0.5π^2 + 0.5π^2

Find

(i) the prices and outputs in each country that maximise profits

### 1 Answer

Relevance

- OiyLv 56 months ago
The profit function is 99q-2q*2+ 99Q-Q*2-50q-50Q-qQ-0.5q*2-0.5Q*2

Take the first derivative under the assumption that q is constant, set to zero, and vice versa if Q is constant.

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