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Question 8. [15 points} American Tire and Rubber Companyr sells identical radial tires under the firm's own brand name and private label tires to discount
Question 8. [15 points} American Tire and Rubber Companyr sells identical radial tires under the firm's own brand name and private label tires to discount stores. The radial tires sold in both submarkets are identical, and the marginal cost is constant at $10 per tire for both types. The firm has estimated the following demand curves for each of the markets. P3 = 'FD DEEDSQB [brand name} PP = 2D .[ll]i]2QP {private label} Quantities are measured in thousands per month and price refers to the wholesale price. a] Find the profitmaximizing price that the rm should charge for brand name tires. b} Find the profitmaximizing price that the rm should charge for private label tires. c] Find the profitmaximizing price if the firm can't price discriminate. d} Will the firm price discriminate
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