Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1. A firm charges different prices for its good in Dublin and Cork. The inverse demand equation for Dublin is P1 = 790 - 20,

image text in transcribed
1. A firm charges different prices for its good in Dublin and Cork. The inverse demand equation for Dublin is P1 = 790 - 20, and for Cork it is P2 = 550 - 2Q2. The total cost function is TC = 60000 + 50Q, where Q = Q1 + Q2. What price will the firm charge if it is to maximise its profits

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Mathematical Analysis I

Authors: Claudio Canuto, Anita Tabacco

2nd Edition

3319127721, 9783319127729

More Books

Students also viewed these Mathematics questions