a. A company faces two markets (Market A and Market B) with different characteristics so that the company applies third-degree price discrimination. The company's analysis results find that the elasticity of demand for market A is -5, while market B is -2. If the company applies a price of Rp.5,000 per unit for Market A, what price should be applied for market B, so that the company's profit is maximum?
b. A diving equipment rental company at a diving site faces a variety of demands. During the holiday season (January, June, and December), the demand is very high with the inverse demand curve P = 196 – 0.5Q, where P = rental value per unit, and Q = the number of equipment rented per month. Meanwhile, for non-holiday months, the demand decreases slightly with the estimated demand function as follows:
P = 116 – 0.5Q
It is also known that the total cost per month is the same during high-season and lowseason, that is TC = 200 – 4Q + 0.5Q ^2 .
i. What is the profit maximizing price and quantity during high-season and lowseason?
ii. How much profit does the company make in a year?
with equation please thank you
a. A company faces two markets (Market A and Market B) with different characteristics so that the company applies third-
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