Question
1a) GM produces Chevys (c) and Buicks (b). The cars are considered substitutes by consumers. Demands are Qc=100-.5Pc-.1Qb and Qb=40-.4Pb-.2Qc. The price functions are Pc=200-2Qc-.2Qb
1a) GM produces Chevys (c) and Buicks (b). The cars are considered substitutes by consumers. Demands are Qc=100-.5Pc-.1Qb and Qb=40-.4Pb-.2Qc. The price functions are Pc=200-2Qc-.2Qb and Pb=100-2.5Qb-.5Qc. Total Revenue is TR=Pc*Qc+Pb*Qb. Total Cost is TC=2Qc+1Qb. Find the profit-maximizing price for Chevys, taking into consideration Chevys and Buicks are substitutes. The profit maximizing price of Chevys is
1b)GM produces Chevys (c) and Buicks (b). The cars are considered substitutes by consumers. Demands are Qc=100-.5Pc-.1Qb and Qb=40-.4Pb-.2Qc. The price functions are Pc=200-2Qc-.2Qb and Pb=100-2.5Qb-.5Qc. Total Revenue is TR=Pc*Qc+Pb*Qb. Total Cost is TC=2Qc+1Qb Find the profit-maximizing price for Buicks, taking into consideration Chevys and Buicks are substitutes. The profit maximizing price of Buicks is
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How China Became Capitalist
Authors: Ronald Coase, Ning Wang
1st Edition
1137351438, 9781137351432
