Question
A local singles bar charges men a higher price than women. Assume that the bar keeper has the following total cost function: TC = 30
A local "singles bar" charges men a higher price than women. Assume that the bar keeper has the following total cost function:
TC = 30 + 4(qm+ qw)
Assume he separates his customers by sex into two distinct markets:
The women's demand function is:
Pw= 80 - 2qw
The men's demand function is:
Pm= 100 - qm
a.What is the profit maximizing price for the women?
b.What is the profit maximizing price for the men?
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Macroeconomics
Authors: Charles I. Jones
4th Edition
393603767, 393603768, 9780393616125 , 978-0393603767
