internal supply and demand schedules Return to problem 7. Suppose division A ean manufacture any quantity it desires and will be eredited with an internai revenue of T per unit manufactured.

Conversely, division B can process and sell any quantity it desires and will be charged an internal price of T per unit for the items supplied by division A.

a] Determine the output quantity for division A that maximizes its profit, as a function of T. Plot this quantity as T varies between 300 and 400. (Place T on the horizontal axis.)

b] Determine the output quantity for division B that maximizes its profit, as a function of T. Plot this quantity on the same graph.

e] Where do the two graphs intersect? What eonneetion do you see between the point of intersection and your work in the earlier problem?AppendixLO1