6) Faced with 2 distinct functions Q1 =24- 0.2P1 ; Q2 = 10 – 0.05P2 & TC =35 + 40Q where Q= Q1 + Q2 What prices and quantities will the firm set a) with discrimination? b) Without discrimination? Find the profit earned in each case .Use MR=MC method to maximize profit and check second order conditions.

6) Faced with 2 distinct functions Q1 =24- 0.2P1 ; Q2 = 10 – 0.05P2 & TC =35 + 40Q where Q= Q1 + Q2 What prices and quantities will the firm set a) with discrimination? b) Without discrimination? Find the profit earned in each case .Use MR=MC method to maximize profit and check second order conditions.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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