4. The market demand function for birthday cards in Greenwich Village is: P = 100-100. The total cost function for producing birthday cards is: C = 60 +20q. Suppose that a firm can perfectly price discriminate (i.e. conduct first- degree price discrimination). How much will its profits be?

4. The market demand function for birthday cards in Greenwich Village is: P = 100-100. The total cost function for producing birthday cards is: C = 60 +20q. Suppose that a firm can perfectly price discriminate (i.e. conduct first- degree price discrimination). How much will its profits be?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

4. The market demand function for birthday cards in Greenwich Village is: P=
100 - 100. The total cost function for producing birthday cards is: C = 60
+ 20q. Suppose that a firm can perfectly price discriminate (i.e. conduct first-
degree price discrimination). How much will its profits be?
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