Calculus Worked-Out Problem 9.5:
The Problem Noah and Naomi produce both garden benches and garden chairs; they are price
)
takers in both markets. Their cost function is (
( )
( )
. The price of a garden bench, PB, is $120. The price of a garden chair, PC, is $75. What
are Noah and Naomi’s profit-maximizing sales quantities of benches and chairs?
The Solution Start by deriving
and
proceed as in the solution to Worked-Out Problem 9.5 in the text.
. Then