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Eric provides cheese (H) and milk (M) to the market with the following total cost function: C(H, M) = 10 + 0.4H2 + 0.2M2. The prices of cheese and milk in the market are $2 and $5 respectively. Assume
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Eric provides cheese (H) and milk (M) to the market with the following total cost function: C(H, M) = 10 + 0.4H2 + 0.2M2. The prices of cheese and milk in the market are $2 and $5 respectively. Assume that the cheese and milk markets are perfectly competitive. What output of milk maximizes profits?

User Omgj
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Answer:

Profit maximization cheese output is 2.5 units and profit maximization milk output is 12.5 units .

Step-by-step explanation:

Please see attachment

Eric provides cheese (H) and milk (M) to the market with the following total cost-example-1
User Dzzxjl
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