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4. Kantai Ltd. produces and sells a product in two markets given by the following demand functions: Q = 600 - 20P Q2 =
4. Kantai Ltd. produces and sells a product in two markets given by the following demand functions: Q = 600 - 20P Q2 = 400 - 5P Where Q and Q2 are the quantities sold in the two markets at prices P and P2 respectively. Kingstone's total cost function is given as TC= 0.05Q + 1000 and Q- Q+ Q2 a. Calculate the quantities and prices that maximizes Kantai's profit b. What is Kantai's maximum profit c. Identify and comment on the nature/form of market separation in the above case d. Explain the conditions necessary for Kantai to charge different prices in the two markets (20 Marks)
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aThe quantities and prices that maximizes Kantais profit To calculate the quantities and prices that maximizes Kantais profit we first need to find the profit function The profit function is given by ...
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Introduction to Operations Research
Authors: Frederick S. Hillier, Gerald J. Lieberman
10th edition
978-0072535105, 72535105, 978-1259162985
