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View History Bookmarks as Profiles Tab Window Help Q . Thu Mar 16 7:07 PM or Budget - LONG, DO X Mail . Madeline Galbraith

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View History Bookmarks as Profiles Tab Window Help Q . Thu Mar 16 7:07 PM or Budget - LONG, DO X Mail . Madeline Galbraith . Du X | i Backstrom Worksheet v4 - CO X Dell Comm172 Assignment 3 Due A X + learning. ca/d?|/fe/content/241295/viewContent/4608653/View de * (Update solus Events . Clean @ Organizational be. Managerial Accou Question 2 Pricing Strategies for Firms with Market Power I Shanice's satellite company broadcasts TV to subscribers in two cities, Luminous and Noble. The demand functions for each of these markets are 21 = 100 - 0.50PL. QN = 60 - 0.25PM 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 C = 1,000 + 40Q, where Q = QN + QL. a) What are the profit-maximizing prices and quantities for the Luminous and Noble markets? b) As a consequence of a new satellite that was recently deployed, people in Luminous receive Shanice's Noble broadcasts, and people in Noble receive Shanice's Luminous broadcasts. As a result, anyone in Noble or Luminous can receive Shanice's broadcasts by subscribing in either city. So Shanice can charge only a single price. What price should she charge, and what quantities will she sell in each city? c) In which of the above situations, a) or b), is Shanice better off? In terms of consumer surplus, which situation do people in Noble prefer and which do people in Luminous prefer? Why? Print 16 80 DII DD 63 F6 F7 F12 6 8 O E R T U O P

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