Question
*Please answer all questions or none at all. Thanks* Question 2: Kips Auto Detailing has locations in two distant neighborhoods, Uptown and Downtown. Uptown customers
*Please answer all questions or none at all. Thanks*
Question 2: Kips Auto Detailing has locations in two distant neighborhoods, Uptown and Downtown. Uptown customers demand is given by QUT=100010P where Q is the number of cars detailed per month; Downtown customers demand is QDT=160020P. The marginal and average cost of detailing a car is constant at $20. Use negative signs where appropriate. Unless otherwise stated, round answers the the nearest one-hundredth place (0.01).
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a. Suppose Kip decides to charge the same price in both markets.
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Question 82 pts
What is his combined demand curve (leave answers as fractions)? Q= + P
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Question 92 pts
What is his combined marginal revenue curve (leave answers as fractions)? MR= + Q
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Question 101 pts
What is his optimal quantity to produce?
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Question 111 pts
What is the optimal price for Kip to charge?
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Question 121 pts
What will Kip's profits be?
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b. Suppose Kip decides to charge different prices at each location.
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Question 132 pts
What is Kip's marginal revenue curve from Uptown? MR= + Q
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Question 141 pts
What is Kip's optimal quantity from Uptown?
Flag question: Question 15
Question 151 pts
What is Kip's optimal price from Uptown?
Flag question: Question 16
Question 161 pts
What is Kip's profit from Uptown?
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Question 172 pts
What is Kip's marginal revenue curve from Downtown? MR= + Q
Flag question: Question 18
Question 181 pts
What is Kip's optimal quantity from Downtown?
Flag question: Question 19
Question 191 pts
What is Kip's optimal price from Downtown?
Flag question: Question 20
Question 201 pts
What is Kip's profit from Downtown?
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