Campbell's sells used trailers, U, and new trailers, N. Its profits are given by p = 100N+68U-5N²-5U² - 2NU. The profit-maximizing combination of trailers for Campbell's is: N = 9 and U = 9. N = 9 and U = 5. N = 7 and U = 7. N = 13 and U = 0. N = 5 and U = 9.

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
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Campbell's sells used trailers, U, and new trailers, N. Its
profits are given by p= 100N +68U-5N²-5U² -
2NU. The profit-maximizing combination of trailers for
Campbell's is:
N = 9 and U = 9.
N = 9 and U = 5.
N = 7 and U = 7.
N = 13 and U=0.
N = 5 and U = 9.
Transcribed Image Text:Campbell's sells used trailers, U, and new trailers, N. Its profits are given by p= 100N +68U-5N²-5U² - 2NU. The profit-maximizing combination of trailers for Campbell's is: N = 9 and U = 9. N = 9 and U = 5. N = 7 and U = 7. N = 13 and U=0. N = 5 and U = 9.
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