Question
A firm is selling its product in two markets. In market A thedemand is given by QA = 100 ? 2P and in market B
A firm is selling its product in two markets. In market A thedemand is given by QA = 100 ? 2P and in market B the demand is QB =80 ? 4P. The firm’s total cost is TC = 1000
A. Calculate the firm’s profit in each market if it can pricediscriminate
B. What is the market demand in part A above?
C. Calculate the firm’s profit in each market if it cannot pricediscriminate.
D. What is the market demand in part C above?
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Economics of Money, Banking and Financial Markets
Authors: Frederic S. Mishkin
9th Edition
978-0321607751, 9780321599797, 321607759, 0321599799, 978-0321598905
