A Producer Has The Possibility Of Discriminating Between The Domestic And Foreign Market For A Product Where The Demands 1 (40.15 KiB) Viewed 73 times
A Producer Has The Possibility Of Discriminating Between The Domestic And Foreign Market For A Product Where The Demands 2 (23.63 KiB) Viewed 73 times
A Producer Has The Possibility Of Discriminating Between The Domestic And Foreign Market For A Product Where The Demands 3 (19.38 KiB) Viewed 73 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=Q₁1+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 Q₁-30-0.25P₁ 1. P₁= Q₁ TR₁= Q₁- Q₁² Market 2 Q2-26-0.2P2 P₂= Q2 TR₂= Q2- Q₂²
2. MR₁ Q₁ 3. MC= 4. Set MR₁-MC and solve for Q₁ Q₁= 5. P₁=$ 6. TR₁= $ 7. TC=$ MR₂= Q2 MC= Set MR₂=MC and solve for Q₂ Q2= P₂=$ TR₂= $ SAME
7. TC=$ Q=Q₁+Q2 = 8. Combined TR= $ TPmax=$ SAME SAME
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!