2. Demand across the two locations - After taking your managerial economics class, you realize that you can probably raise your profits by price discriminating by charging different prices in the two locations. You then break down sales across the two locations. In Laredo: You sold 960 burger meals per week at $10 and 600 meals at $13. In San Antonio: You sold 1440 meals per week at $10 and 1200 meals at $13 A. Using the two prices above, estimate your demand function in Laredo. What would demand be at the optimal price from Q1 B. Using the two prices above, estimate your demand function in San Antonio. What would demand be at the optimal price from Q1?
2. Demand across the two locations - After taking your managerial economics class, you realize that you can probably raise your profits by price discriminating by charging different prices in the two locations. You then break down sales across the two locations. In Laredo: You sold 960 burger meals per week at $10 and 600 meals at $13. In San Antonio: You sold 1440 meals per week at $10 and 1200 meals at $13 A. Using the two prices above, estimate your demand function in Laredo. What would demand be at the optimal price from Q1 B. Using the two prices above, estimate your demand function in San Antonio. What would demand be at the optimal price from Q1?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Given
Question #1
- Cost function C= 3000+6Q
- Q = 4400 - 200Q
- Q= 1600 P = 14
- Profit= 22400-12600 = 9800
Question #2
- Q=$480 - Laredo
- Q=$1120 - SA
Question #3
- Ed=−1.25 - Laredo
- Ed=−0.55 - SA
- 0.5<0.8− markup index it is charging less. - Laredo
- 0.64<-1/-0.55--markup index it is charging less. - SA
Please answer question number #4 A-C
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