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A manufacturer grows oranges which are used to produce orange juice and orange marmalade. One orange gives 1 unit of orange juice AND 2 units of marmalade. Assume that the cost function of growing

A manufacturer grows oranges which are used to produce orange juice and orange marmalade. One orange gives 1 unit of orange juice AND 2 units of marmalade. Assume that the cost function of growing oranges is given by C(q)=0.05 q2 (and assume that there are no further costs of production). Demand for orange juice is given by qJ = 25 – 50 pJ and demand for marmalade is given by qM = 100 – 50 pM where pJ and pM denote the prices for orange juice and marmalade respectively. How many oranges should the manufacturer grow and what prices should she set for marmalade and juice? Assume that disposal is free.

Apr 13 2021 View more View Less

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