Question
A producer of athletic shoes produces all of its basketball shoes at a constant marginal cost of $50 per pair. It sells a brand-name version
A producer of athletic shoes produces all of its basketball shoes at a constant marginal cost of $50 per pair. It sells a brand-name version of the shoe with a basketball star endorsement to one market (A) and an identical "discount" brand version to another separate market (B). The demand for the shoes in each market is given by:
QA = 80 - 0.2p QB = 60 - 0.4p
- What is the price per pair in the brand-name market (A)?
- What is the price per pair in the discount market (B)?
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Intermediate Accounting
Authors: J. David Spiceland, James Sepe, Mark Nelson
6th edition
978-0077328894, 71313974, 9780077395810, 77328892, 9780071313971, 77395816, 978-0077400163
