Question: American Export-Import Shipping Co Operates a general cargo carrier service between New York and several Western European ports. IT hauls two major categories of freight: manufactured items and semi manufactured raw materials. The demand functions for these two classes of good are

P? = 100 – 2Q?

P? = 80 – Q ?

Where Q? = s of freight moved. The total cost function for American is

TC = 20 + 4(Q? + Q?)

a) Determine total profit function

b) What are the profit maximizing levels of price and output for the two freight categories?

c) At these levels of output, calculate the marginal revenue in each market.