A firm that sells in two separate markets has the profit function where q1 and q2 sales in the two markets. Find the profit maximizing sales in each market, using the Hessian to check second-order conditions for a maximum.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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1. A firm that sells in two separate markets has the profit function

where q1 and q2 sales in the two markets. Find the profit maximizing sales in each market, using the Hessian to check second-order conditions for a maximum.

2. Find the values of q1 and q2 that will maximizing the profit function

and check that second-order conditions are met using the Hessian matrix.


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