Question
Sal's satellite company broadcasts TV to subscribers in Los Angeles and New York. The demand functions for each of these two groups are Q NY
Sal's satellite company broadcasts TV to subscribers in Los Angeles and New York. The demand functions for each of these two groups are
QNY=2400.6PNYQLA=2000.4PLA
where Q is in thousands of subscriptions per year and P is the subscription price per year. The cost of providing Q units of service is given by C = 1000 + 60Q where Q = QNY+ QLA
What are the profit-maximizing price and quantity for Los Angeles?
Suppose Sal can charge only a single price. What price should he charge, and what quantities will he sell in New York?
Suppose Sal's satellite company split to two individual companies, SalNY and SalLA. What will be the price and quantity for SalNY in the long run if they compete with each other by choosing quantity? (Round off to second decimal place)
Suppose Sal's satellite company split to two individual companies, SalNY and SalLA. What will be the price and quantity for SalNY in the long run if SalNY can choose first?
Suppose Sal's satellite company split to two individual companies, SalNY and SalLA. What will be the price and quantity for SalNY in the long run if they compete with each other by choosing price?
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