Question
Hi there, I'm having issues with this: You are the marketing manager of a !rm that produces titanium and sells this metal to two distinct
Hi there, I'm having issues with this:
You are the marketing manager of a !rm that produces titanium and sells this metal to two distinct kinds of customers: aircraft producers and golf club manufacturers. Demand for titanium by these two market segments is quite different, as described by the respective price equations:
= 10 0.002 and = 12 0.01 , where annual quantities [ and ] are in thousands of pounds, and prices [and]are in dollars. Your firm estimates the marginal cost of titanium production at $4 per pound.
For each segment, determine the firms profit-maximizing output.
For each segment, determine the firm's pro!t-maximizing price. Is the firm price discriminating?
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