Question
Suppose that you sell a product that is demanded by two different segments of the population (call them X and Y). Suppose that the
Suppose that you sell a product that is demanded by two different segments of the population (call them X and Y). Suppose that the inverse demand from segment X is Px = 200-2Qx and the inverse demand from segment Y is Py = 75 -0.5Qy. Suppose that your total cost is TC = 100+400 + 20 and your marginal cost is MC = 40 +4Q. Assume that you are going to segment the market. A. What is the price you would charge to segment X? How much would you sell to segment X and what will your profit be from segment X? B. What is the price you would charge to segment Y? How much would you sell to segment Y and what will your profit be from segment Y?
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