Ferdinand Sludge has just written a disgusting new book, Orgy in the Piggery. His publisher, Graw McSwill, estimates that the demand for this book in the United States is Q1 = 50, 000 − 2, 000P1, where P1 is the price in the U.S. measured in U.S. dollars. The demand for Sludge’s opus in England is Q2 = 10, 000 − 500P2, where P2 is its price in England measured in U. S. dollars. His publisher has a cost function C(Q) = $50, 000 + $2Q, where Q is the total number of copies of Orgy that it produces.
(a) If McSwill must charge the same price in both countries, how many copies should it sell? ______. What price should it charge to maximize its profits _____. How much will those profits be? _____.
(b) If McSwill can charge a different price in each country and wants to maximize profits, how many copies should it sell in the United States? 23,000. What price should it charge in the United States? _____. How many copies should it sell in England? 4,500. What price should it charge in England? _____. How much will its total profits be? ______.