A firm has the exclusive contract to produce hats with the local university's logo. Current weekly demand is: Q=350-5P. Its weekly cost function is:
A firm has the exclusive contract to produce hats with the local university's logo. Current weekly demand is: Q=350-5P. Its weekly cost function is: TC = 3500 + 4Q +.02Q. Assume this firm finds a way to apply perfect first degree price discrimination. a. Now what is this firm's profit-maximizing weekly quantity? b. What is the firm's weekly profit? If instead the firm decides to use two-part pricing, assuming all customers have identical demands, find the profit-maximizing c. entry fee d. use fee
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a Now what is this firm s profit max im izing weekly quantity ANS WER Q 350 D ETA IL ED WORK ING The firm s profit can be expressed as follows TR TC where TR is the total revenue and TC is the total c...
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Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
20th Edition
1259157148, 78110874, 9780077616212, 978-1259157141, 77616219, 978-0078110870
