Question
D1 = 200 - 0.25Q D2 = 300 - 0.25Q MRT = 250 - 0.25Q DT = 250 - 0.125Q MC = 0.0008Q^2 - 0.45Q
D1 = 200 - 0.25Q
D2 = 300 - 0.25Q
MRT = 250 - 0.25Q
DT = 250 - 0.125Q
MC = 0.0008Q^2 - 0.45Q + 150
a.Compare the demand conditions in each market; i.e. how do the two markets differ in their demand for the firm's product?
b.How much total output should the firm produce (for both markets combined)? How should that output be allocated between markets 1 and 2?
c.What price should the firm charge in each market?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
International economics
Authors: Robert J. Carbaugh
13th Edition
978-1439038949, 1439038945, 978-8131518823
