Business
Business, 27.06.2020 23:01, mcmccann4317

A monopoly firm faces two markets where the inverse demand curves are: Market A: P_A = 140 - 2.75Q_A.

Market B: P_B = 120 - Q_B.

The firm operates a single plant where total cost is C = 20Q + 0.25Q^2, and mammal cost is m = 20 + 0.5Q.

Required:

1. Suppose the firm sets a single price for both markets. Using the information above, the profit maximizing price is $86.18 and the profit maximizing quantity is 53.37 units. Given this information, you determine that the firm will earn a profit of $ .

2. Now suppose the firm is able to engage in group price discrimination. To maximize profits, the firm will produce 16.95 units for market A and charge customers in market A a price of $ 93.39 per unit. And it will produce 36.6 units for market B and change customers in market B a price of $ per unit.

3. If the firm engages in your price discrimination it will earn a profit of $ .

answer
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 07:30, edna27
When the national economy goes from bad to better, market research shows changes in the sales at various types of restaurants. projected 2011 sales at quick-service restaurants are $164.8 billion, which was 3% better than in 2010. projected 2011 sales at full-service restaurants are $184.2 billion, which was 1.2% better than in 2010. how will the dollar growth in quick-service restaurants sales compared to the dollar growth for full-service places?
Answers: 2
image
Business, 22.06.2019 11:40, Josias13
In early january, burger mania acquired 100% of the common stock of the crispy taco restaurant chain. the purchase price allocation included the following items: $4 million, patent; $3 million, trademark considered to have an indefinite useful life; and $5 million, goodwill. burger mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life. what is the total amount of amortization expense that would appear in burger mania's income statement for the first year ended december 31 related to these items?
Answers: 2
image
Business, 22.06.2019 12:30, bella51032
True or false entrepreneurs try to meet the needs of the marketplace by supplying a service or product
Answers: 1
image
Business, 22.06.2019 17:30, neriah30
Fabian got into an accident on his way to work. he had multiple fractures in his leg. his doctor advised strict bed rest for at least three months. fabian is a freelance wildlife photographer who usually works on a contract basis, and this is his primary source of income. before the accident, fabian was planning his finances. which goal of his financial plan would fabian in getting through without pay for the next three months? the goal that requires the creation of a/an would fabian get through the next three months without pay.
Answers: 1
Do you know the correct answer?
A monopoly firm faces two markets where the inverse demand curves are: Market A: P_A = 140 - 2.75Q_...

Questions in other subjects:

Konu
Mathematics, 29.01.2020 04:55
Konu
Mathematics, 29.01.2020 04:55