18. (12 points total) American Eaglet sells surfing equipment in Los Angeles (LA) and Honolulu (Hon). The demand functions for each of these two groups are

Q_LA = 600 - 2.5P_LA Q_Hon = 800 - 4.0P_Hon

where Q is the number sold and P is the price of the equipment. The cost of providing Q units of the equipment is given by

C = 10,000 + 50Q where Q = Q_Hon+ Q_LA.

a. (5 points) What is the profit-maximizing quantity for the Honolulu market?

b. (3 points) What is the profit-maximizing price for the Honolulu market?

c. (4 points) Based on the facts above, briefly explain whether the profit-maximizing price in Los Angeles would be the same or different than the price in Honolulu (no additional calculations are necessary).