Exercise 12

Maximum profit in perfect competition with two goods

Theory used: Maximum profit with two goods Hessian test

A firm in perfect competition sells two goods at prices of $32$ and $22$ euros, with cost $C (q_{1}, q_{2}) = q_{1}^{2} + q_{1} q_{2} + q_{2}^{2}$ . Find the quantities that maximize profit and the maximum profit.

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