- A firm in a perfectly competitive market produces and sells two goods Q1 and Q2 priced at KES 400 and 50 respectively. The firms total cost function is given as TC=4Q1 2+3Q1Q2+2Q2 2+10 Required i) Firm the total revenue of the firm (8 marks) ii) Find the critical Q1and Q2 for profit maximization
- Given the following equation U2 =X1X2., decompose the total effect of a price change when the price of good reduces by 20 percent from 30 shillings . The income of the consumer is 10,000 shillings per month while the price of good two is 40 shillings
