Question 3- A two-product firm faces the following demand and cost functions: Q₁ = 40-2P₁-P2 Q2 = 35-P₁-P2 C = Q² +2Q2 + 10 (a) Find the output levels and prices that satisfy the first-order condition for maximum profit. (Use fractions instead of decimals.) (b) Check the second-order sufficient condition. Can you conclude that this problem possesses a unique absolute maximum? (c) What is the maximal profit?
