A monopolistic manufacturer produces two different brands of a product whose demand functions are nb...........

Economics-III Industrial Economics

A monopolistic manufacturer produces two different brands of a product whose demand functions are

P₁= 56 - 4Q₁

P₂= 48 - 2Q₂

and the joint cost function is

TC = $Q_{1}^{2}+5Q_{1}Q_{2}+Q_{2}^{2}$

Find the profit maximising level of output and the price that would be charged for each brand. Also find the maximum profit. (20 Marks ) (300 words)

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