A firm produces two products (A and B) jointly. Every time a unit of A is produced, a unit of B is also produced as a byproduct. The demand functions for A and B are:The marginal cost of producing a joint output is: $$Q _ { A } = 300 - 2 P _ { A } \quad Q _ { B } = 100 - P _ { B }$$ MC = 50 + QAssuming that disposal is costless, determine the price that should be charged for each of the products in order to maximize profits.

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The Answer of A firm produces two products (A and B) jointly. Every time a unit of A is produced, a unit of B is also produced as a byproduct. The demand functions for A and B are:The marginal cost of producing a joint output is: $$Q _ { A } = 300 - 2 P _ { A } \quad Q _ { B } = 100 - P _ { B }$$ MC = 50 + QAssuming that disposal is costless, determine the price that should be charged for each of the products in order to maximize profits.

A Firm Produces Two Products (A and B) Jointly QA=300−2PAQB=100−PBQ _ { A } = 300 - 2 P _ { A } \quad Q _ { B } = 100 - P _ { B }QA​=300−2PA​QB​=100−PB​

A Firm Produces Two Products (A and B) Jointly $Q _ { A } = 300 - 2 P _ { A } \quad Q _ { B } = 100 - P _ { B }$