Microeconomic

Q3. A satellite company broadcasts TV to subscribers in two cities: New York (NY) and Los Angeles (LA). The demand functions for each of these two groups are QNY - 50 - PNY QLA = 80 - PLA where Q is in thousands of subscriptions per year, and P is the subscription price per year. The cost of providing Q units of service is given by C = 1000 + 30 Q where Q = QNY + QLA Q3 a) What are the profit maximizing prices and quantities for both the New York and the Los Angeles markets? Show all your working/calculations step by step. 10 marks