A furniture manufacturer sells its product directly to consumers and also to retailers. The demand functions of the two types of customers and the total cost function of the furniture company are given below:

Consumers: Q₁=200-5P₁

Retailers: Q₂=100-10P₂

TC=10+5Q

(Note that this last equation is fortotalcost.)

What is the optimal level of output ?

What is the optimal quantity _____ and price ______ to sell to consumers?

What is the optimal quantity _______ and price ______ to sell to retailers?