Question: A farmer sells two products A and B. the two products are assumed to be jointly produced in fixed proportion. The marginal cost equation for the products A + B package is given by

MC = 50 + 4q

The selling prices of Product A and B are given below.

Product A Product B

p=100-1q p=150-2q

where q is the quantity sold.

i. Calculate the quantity which will yield the maximum profit.

ii. Calculate the selling prices of Product A and B based on the results in ( c ) (i)