Question
Crusty Cakes sells donuts in Eastown and Westown. Its total costs are given by TC = 10(QE+QW). The demand in each neighborhood is given by
Crusty Cakes sells donuts in Eastown and Westown. Its total costs are given by TC = 10(QE+QW). The demand in each neighborhood is given by QE = 100 - 2PE and QW = 100 - PW. If Crusty price discriminates between the two neighborhoods, how much are its maximized profits?
a. $850
b. $1200
c. $2475
d. $2825 *this is the answer I just do not know why
e. $3250
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Gapenskis Fundamentals Of Healthcare Finance
Authors: Paula H. Song, Kristin L. Reiter
3rd Edition
1567939759, 978-1567939750
