Two Products Manufacturer’s Production Decisions with Carbon Constraint

In this paper, we consider a manufacture which produces both ordinary products and green products in a monopoly market, and investigate his production decisions with carbon constraint. Firstly, we derive the manufacturer’s optimal production and maximum profit without carbon constraint. Then, we discuss the optimal production and maximum profit with carbon constraint in different situation. The results indicate that manufacturer’s optimal production and maximum profit with carbon constraint are less than them without carbon constraint, optimal production is an increasing function with carbon constraint.