solution

The Stock Corporation makes two products, paper and cardboard. The relationship

between p, the firm’s annual profit (in thousands of dollars), and its output of each good is where Q1 is the firm’s annual output of paper (in tons), and Q2 is the firm’s annual output of cardboard (in tons). a. Find the output of each good that the Stock Corporation should produce if it wants to maximize profit. b. If the community in which the firm is located imposes a tax of $5,000 per year on the firm, will this alter the answer to Part a? If so, how will the

answer change?