A producer has the possibility of discriminating between the domestic and foreign market for a product where the demands

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A Producer Has The Possibility Of Discriminating Between The Domestic And Foreign Market For A Product Where The Demands 1 (55.83 KiB) Viewed 33 times

A producer has the possibility of discriminating between the domestic and foreign market for a product where the demands respectively are: Q₁ = 30 -0.25P₁ Q₂ = 26 -0.2P₂ Total cost 100+20Q where Q- Q₁+Q₂ a) What price will the producer charge in order to maximize profits with discrimination between markets. b) What is the maximum profit. Round all intermediate and final answers to the nearest cent, 2 d.p. Market 1 Market 2 Q1=30-0.25P1 Q2=26-0.2P₂ 1. P1= TR₁ 2. MR₁ 3. MC= Q1= 5. P₁=$ 6. TR1= $ 4. Set MR₁=MC and solve for Q₁ 7. TC=$ Q1- 8. Combined TR= $ TPmax=$ Q₁ Q1² Q₁ Q=Q1+Q2 = P₂= TR₂= MR₂= MC= P₂=$ TR₂= $ SAME Q2- Set MR₂=MC and solve for Q₂ Q2= SAME Q2 Q2² Q2₂