For this problem I was given the Fixed Cost, Marginal cost, and demand curves for two firms (x and y). So far, from this information I derived the profit (π) function for each firm.
Normally, when maximizing profit, we would use LaGrange. However, the λ constraint was something like cost or budget.
My second guess is to simply take the first partial derivative of each to maximize, but I dont think that will account for the fact that each profit function is dependent on outcome of the other.
Can someone point me in the right direction?
(apologies for format)