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Question 2 You run one of the United States' only remaining manufacturers of bowling balls. You hired a consultant recently who suggested setting different prices

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Question 2 You run one of the United States' only remaining manufacturers of bowling balls. You hired a consultant recently who suggested setting different prices in some ofthe markets you operate. You know that current monthly demand for bowling balls in the United States can be written qd z 100*(2?5 p) which implies that doaldp = -10CI and that marginal revenue isjust 275 qf50. Your marginal cost of production is 25. There are no fixed costs. 2.1 What is the profit-maximizing price and quantity? 2.2 Your consultant suggest selling the ball at a lower price on the West Coast. He believes that you can decompose your demand so that demand on the West Coast is written Eld,w I 50*(315 p) with marginal revenue equal to 315 - (tow/'30 and aqwxap z -6l3- while demand in the rest of the country can be written quE z 40*(215 p) with marginal revenue equal to 215 - Cree/20 and dquE/dp : -40 Your marginal cost of production is still 25. How many balls do you produce? At what price do you sell them in each market? 2.3 Are you better or worse off selling the bowling balls at different prices relative to your solution from qUEStion 2.1

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