A shipping company has two major classes of freight: (1) manufactured items and (2) semi manufactured raw materials. The demand functions for these two classes of goods are

p1 = 100 - 2Q1

P2 = 80 - Q2

Where Q is tons of freighted moved. The total cost function for the firm is

TC - 20+ 4(Q1+Q2)

A. Determine the firm's total profit function.

B. What are the profit - maximizing levels of price and output for the two freight categories if the firm price discriminates?

C. At these level of output, calculate the marginal revenue in each market.

D. What are the total profits if the firm price discriminates?

E. If the firm cannot price discriminate and must change one price for both classes of freight, what are the profits?

F. Explain the difference in profit levels between the differential pricing and uniforms pricing cases.