Question
A company can successfully charge different prices in country A and B. What quantity do they produce in each plant? What are the profit- maximising
A company can successfully charge different prices in country A and B.
What quantity do they produce in each plant? What are the profit- maximising prices in each country? What quantity do they sell in each country?
Demands for the product are below.
Country A: Q=20.5-P
Country B: Q=5-P
Marginal Costs at each plant are below.
Plant 1: $10
Plant 2: 0.1Q (Q= the total quantity produced at the plant 2)
Step by Step Solution
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There are 3 Steps involved in it
Step: 1
The company produces Q1165 units in Plant 1 and Q24 units in Plant 2 ...
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Project Management The Managerial Process
Authors: Erik Larson, Clifford Gray
6th edition
1259186407, 978-0078096594, 78096596, 978-1259186400
