Mathematics, 14.06.2021 08:40, brooke0713

Problem 1 (2 points): The demand function for a firm’s domestic and foreign markets are: P1 = 50 – 4Q1
P2 = 40 – 5Q2
and the total cost function is:
TC = 25 + 12Q, where Q = Q1 + Q2.
a/ Determine the prices needed to maximize profit with and without price discrimination;
b/ Find the maximum profit values in these two cases and give your comment

Answers: 3

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