Engineering, 26.09.2021 18:40, skullglitches

Demand for Blue Skies’ customized planes is given by P = 870,000 − 3,000Q. The cost of producing engines is Ce(Qe) = 6,000Qe2, and the cost of assembling airplanes is Ca(Q) = 24,000Q. What problems would occur if the managers of each division were given incentives to maximize each division’s profit separately? multiple choice Lower profits due to block pricing Lower profits due to price discrimination Lower profits due to double marginalization Correct Lower profits due to randomized pricing

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Demand for Blue Skies’ customized planes is given by P = 870,000 − 3,000Q. The cost of producing eng...