Screenshot 2024-02-16 at 4.12.59 PM

png

School

University of California, Los Angeles *

*We aren’t endorsed by this school

Course

101

Subject

Economics

Date

Feb 20, 2024

Type

png

Pages

1

Uploaded by GeneralOryx4061

Report
8. Imagine that Tesla (the car company) starts selling its new model, the Cybertruck, in Cali- fornia and Florida. Assume that the Cybertruck is differentiated enough from other vehicles that we can approximate Tesla as a monopolist in this market. Let g. and gy be the quan- tities of Cybertrucks sold in California and Florida, respectively. The inverse demand for Cybertrucks in each location is p.(gc) = 24 — g and ps(gr) = 32 — 2¢y. All Cybertrucks are produced in the same factory, with decreasing returns to scale. The total cost function for Tesla is C(gc,qf) = (g + qf)?. Assuming Tesla maximizes profits, how do the prices in California and Florida compare?
Discover more documents: Sign up today!
Unlock a world of knowledge! Explore tailored content for a richer learning experience. Here's what you'll get:
  • Access to all documents
  • Unlimited textbook solutions
  • 24/7 expert homework help

Related Documents

View Submission _ Gradescope2.pdf
BANTA COMM.docx
Q7-10.png
Activity #1 Indexes-4.docx
SPH 273 Individual Q&A (1).pdf
Screenshot 2024-02-16 at 4.07.38 PM.png
Screenshot 2024-02-16 at 4.13.04 PM.png
journal entry.docx
SA3_RSolution_Econ140.Rmd
Reading Response 4-3.docx
HW1_Student (1).xlsx
SOC4_Week_06_Quiz_02.docx
Recommended textbooks for you
Text book image
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Text book image
Microeconomic Theory
Economics
ISBN:9781337517942
Author:NICHOLSON
Publisher:Cengage
Text book image
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Economics For Today
Economics
ISBN:9781337613040
Author:Tucker
Publisher:Cengage Learning
Text book image
Survey Of Economics
Economics
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Cengage,
SEE MORE TEXTBOOKS
Recommended textbooks for you
Text book image
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning
Text book image
Microeconomic Theory
Economics
ISBN:9781337517942
Author:NICHOLSON
Publisher:Cengage
Text book image
Essentials of Economics (MindTap Course List)
Economics
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Micro Economics For Today
Economics
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Cengage,
Text book image
Economics For Today
Economics
ISBN:9781337613040
Author:Tucker
Publisher:Cengage Learning
Text book image
Survey Of Economics
Economics
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Cengage,
SEE MORE TEXTBOOKS