Question 4 A monopolistic producer of two goods, G, and G2, has a joint total cost function TC = Q? + 3Q1Q2 + Q? where Q1 and Q2 denote the quantities of G, and G2 respectively. If P, and P2 denote...

Extracted text: Question 4 A monopolistic producer of two goods, G, and G2, has a joint total cost function TC = Q? + 3Q1Q2 + Q? where Q1 and Q2 denote the quantities of G, and G2 respectively. If P, and P2 denote the corresponding prices then the demand equations are 0.5Q1 = 25 – 0.5P, 0.8Q2 = 36 – 0.4P2 a) Find an expression for the firm's profit. b) Determine the firm's pricing policy that maximizes profit using the first and second other conditions. c) Calculate the value of the maximum profit at the profit maximizing level of outputs. d) Now, supposed the firm is contracted to produce a total of 20 goods of either type, find the level of Q1 and Q2 that maximises profit. e) Estimate the new optimal profit if the production quota increases to 24 units.