A firm produces and sells a product in two separate markets, A and B. The demand functions for the two markets are given by the following relationships. QA = a − bPA and QB = c − dPB The total cost of production is given by the following function. C(QA ,QB ) =  + (QA + QB ) Note that a,b,c, d, and  are positive constants. (a) Find profit maximizing output levels and prices and maximum profit in terms of the constants.

/in /by

A firm produces and sells a product in two separate markets, A and B.
The demand functions

for the two markets are given by the following relationships.

QA = a − bPA and QB = c − dPB

The total cost of production is given by the following function.

C(QA ,QB ) =  + (QA + QB )

Note that a,b,c, d, and  are positive constants.

(a) Find profit maximizing output levels and prices and maximum
profit in terms of the

constants.

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