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4. (6 points) Optimal price in Laredo You decide to charge different prices in the two locations. To do this, you decide to use
4. (6 points) Optimal price in Laredo You decide to charge different prices in the two locations. To do this, you decide to use the demand functions below to calculate separate optimal prices in the two locations. 3 Demand Function of San Antonio =D(q)=-2409 +16 3 Demand Function of Laredo = D(q) - 3309 + 12 For your costs in Laredo, you have fixed costs of $1000 per week. In addition, it costs you six dollars per burger in variable costs (ingredients, labor etc.) A. What is your cost function in Laredo? B. Using the demand function from above, calculate the profit maximizing price and quantity. Is the new price higher or lower than the price if you do not price discriminate? | C. What are your profits in Laredo?
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