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QUESTION 1 The United Parcel Service (UPS) primary business is the time-definite delivery of packages and documents worldwide. But in 2004, UPS entered the heavy treight business and now service to include freight trucking transportation. UPS has two major customer groups -- Steel America Corporations (S) and Com International Federation (C)--that ship freight betw PA, and Hammond, IN. UPS'total cost function and each customer group's demand curves for freight services are as follows: Note: PMR. PMR Steel America Corn International Total Cost Ps= 146 -0.4Qs = PC 98 -0.2QC TC = 3,000 + 380 Qs = the quantity of steel shipped (measured in pounds) Ps = the freight shipping price for Steel America (measured in $) = QC = the quantity of corn shipped (measured in pounds) Pc = the freight shipping price for Corn International (measured in $) A Calculate UPS' output, price, and profit under their price discrimination scheme. Round quantity to a whole number. Round prices and profit to two decimal places. Qs = Ps = QC- PC = IT = B. Compute the ordinary-demand curve for Steel America freight. Qs = f(Ps) = = C. Compute the ordinary-demand curve for Corn International freight. Qc = f(Pc) = D Calculate point price elasticities of demand for each customer class at the profit-maximizing prices and quantities identified in part 'A'. Round price elasticities two decimal places. ePs = ePc = E. Are the differences in the elasticities in question #4 consistent with the computed prices in part 'A'? Record your answer by letter, e.g., E.k. a. The higher-inelastic epc is consistent with the lower PC. b. The lower inelastic eps is consistent with the higher Ps. c. The higher elastic eps is consistent with the higher Ps. d. The higher elastic epc is consistent with the lower PC e. The lower elastic epc is consistent with the lower.Pc. For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). TX 4 5 od Q 10pt s Open Sans, s... v Paragraph Q ק| !!! II