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Not sure if I'm doing this right The latest fad among the trendy in France has been all things Canadian and fromage canadien has suddenly

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Not sure if I'm doing this right

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The latest fad among the trendy in France has been all things Canadian and "fromage canadien" has suddenly become the rage. CanDairy Inc., an Ontario-based Canadian dairy company, finds itself facing two different cheese demand functions, one for the domestic market: 400 \\ 0.5 Qa = 400Pat, Pa = and one for exports to France: Qf = 50P- 15 P ; = 50 0.67 The total cost function for producing cheese is: TC = 15 + 3.5(Qa + Q;). Please show all of your work in answering the following. [***HINT: Using the markup pricing will greatly simplify calculations for this problem.] 1. (8 points) What were CanDairy's profits prior to selling cheese this new market - i.e., when they sold only in the domestic market? (First, identify the profit maximizing price and then quantity. Use markup pricing to simplify the process. For fractions, report numbers up to the fourth decimal point.) 2. (8 points) What is the new profit function (write down the generic form) for CanDairy after selling in both domestic and French markets? Find the profit-maximizing price and output for the French market

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