Image transcription text

There are only two firms in the ice cream cake industry, which can be summarized by the market demand function P(Q) = 112 - 1.50. Baskin Robbins (BR) controls a significantly larger market share with over 6,000 stores, compare to Dairy Queen (DQ)'s 3,750. Currently, BR is able to determine how many ice cream cakes they will produce and sell before DQ. BR's total operation cost is TC(qBR) = 249 + 79BR. If DQ's total cost is TC(qDo) = 76 + 19qDo, compute the ice cream cake industry's profits. Hint: if you maintain the use of fractions throughout the problem, you'll end up with mostly "nice" numbers. Round output to one decimal place and dollar- values to the nearest cent (two decimal places) if necessary.

There are only two firms in the ice cream cake industry, which can be summarized by the market demand function P(Q) = 1121.50. Baskin Robbins (BR) controls a significantly larger market share with over 6,000 stores, compare to Dairy Queen (DQ)'s 3,750. Currently, BR is able to determine how many ice cream cakes they will produce and sell before DQ. BR's total operation cost is TC(qBR) = 249 +7qBR. If DQ's total cost is TC(qpo) = 76 + 19qpo, compute the ice cream cake industry's profits. Hint: if you maintain the use of fractions throughout the problem, you'll end up with mostly "nice" numbers. Round output to one decimal place and dollar- values to the nearest cent (two decimal places) if necessary.