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CompanyE provides cellular services to Utah and Texas. The demand curves from each region are Qu = 50 - 1/3 Pu and Qt = 80
CompanyE provides cellular services to Utah and Texas. The demand curves from each region are Qu = 50 - 1/3 Pu and Qt = 80 - 2/3Pt, where Qu and Qt are the yearly number of subscriptions and Pu and Pt are the yearly price of a subscription, in Utah and Texas respectively, and Q = Qu + Qt is the total number of subscriptions provided. The marginal cost MC(Q) = 30 and fixed cost is FC = 1000. CompanyE maximizes overall profits. The profit-maximizing number of subscriptions in Utah is closest to: 1) Qu = 10 2) Qu = 20 3) Qu = 30 4) Qu = 40
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