If a perfectly competitive firm which produces two commodities, has the cost function C = 2Q² + 2Q where Q, and Q2 denote the production level of commodity 1 and commodity 2 respectively. (Note: There are 3 questions in the test regarding the information given above) If the prices of commodities are P and P, respectively, find the optimal levels of output that the firm should produce to maximize its profit O a. Q; = 1/4P, and Q; = 1/4P, O b. Qi 1/6P, and Q; = 1/4P, O c. Q; = 1/6P and Q; = 1/6P, O d. Qi = 1/4P, and Q; = 1/6P,

If a perfectly competitive firm which produces two commodities, has the cost function C = 2Q² + 2Q where Q, and Q2 denote the production level of commodity 1 and commodity 2 respectively. (Note: There are 3 questions in the test regarding the information given above) If the prices of commodities are P and P, respectively, find the optimal levels of output that the firm should produce to maximize its profit O a. Q; = 1/4P, and Q; = 1/4P, O b. Qi 1/6P, and Q; = 1/4P, O c. Q; = 1/6P and Q; = 1/6P, O d. Qi = 1/4P, and Q; = 1/6P,

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter19: Externalities And Public Goods

Section: Chapter Questions

Problem 19.1P: A firm in a perfectly competitive industry has patented a newprocess for making widgets. The new...

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