Business, 02.06.2020 17:58 tangia

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 $ .

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 11:50

Which of the following does not offer an opportunity for timely content? evergreen content news alerts content that suits seasonal consumption patterns content that matches a situational trigger content that addresses urgent pain points

Answers: 2

Answer

Business, 22.06.2019 20:10

Peppy knows a lot about marketing, but not much about the legal or financial aspects of starting a new business. he wants to consult with a lawyer and accountant, but his budget is tight with all of the expenses involved in getting peppy's pizzazzeria up and running. peppy should: trust his basic instincts and try to put it together without the advice of lawyers and accountants. delay talking with a lawyer and accountant until the business has established a positive cash flow for at least one year. immediately hire full-time lawyers and accountants for his staff. consult with a lawyer and accountant even though the budget is tight.

Answers: 1

Answer

Business, 23.06.2019 00:30

Emerson has an associate degree based on the chart below how will his employment opportunities change from 2008 to 2018

Answers: 3

Answer

Business, 23.06.2019 00:30

2. which of the following statements about interest is true? a. interest is a one-time fee that you pay for lending money. b. interest is expressed as a percentage of the amount you are borrowing. c. because interest rates tend to be small numbers, they typically don't have much effect on the price of the goods you're purchasing. d. interest is a penalty that you pay when you don't pay your bills on time.

Answers: 1

Answer

You know the right answer?

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

Questions