Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

There are two markets : RGC : and CU : The demand functions are : P1= 180-8Q1 And P2= 100-4Q2 TC = 50 20(Q1 Q2)

There are two markets : RGC : and CU : The demand functions are : P1= 180-8Q1 And P2= 100-4Q2 TC = 50 20(Q1 Q2) Total profit functions TR TC = 180q1-8q1^2 100q2-4q2^2-50-20q1-20q2. Now it can charge different prices with different markets . The equilibrium condition are: MR1 = MC1 And MR2 = MC2. TR1 = 180q1-8q1^2 MR1 = 180-16q1 MC1: 20. MR1 = MC1 180-16Q1 = 20. Q1= 160/16= 10. P1= 180-80 = 100. TR2= 100Q2-4Q2^2 MR2 = 100-8Q2 Mc2= 20. 100-8Q2= 20 Q2= 10. P2= 100-40= 60. Total profit :, = 100(10) 60(10) 50-20(20) = 1000 600-50-400 = 1600-450 = 1150

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Strategic Management And Business Policy Toward Global Sustainability

Authors: Thomas L. Wheelen, J. David Hunger

13th Edition

9780132998079, 132998076, 978-0132153225

More Books

Students also viewed these Economics questions

Question

Define the terms macro-finance and micro-finance.

Answered: 1 week ago

Question

Recognise when processcosting systems are used.

Answered: 1 week ago