Marginal costs
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A firm produces two different goods, with demand given by the following:
Pa = 500 – 15Qa – 2Qb and Pb = 200 – 2Qb Where Pa = price of good A, Pb = price of good B, Qa = quantity of good A and Qb = quantity of good B. The marginal costs for the two goods are 100 for good A and 75 for good B.
Determine optimal prices and quantities for each good
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