6. A manager faces two separate markets and decides to price-discriminate. The estimated demand functions for the two markets are: QA = 2,250 – 40PA Qв %3D 3,600 - 90Рв The long-run marginal cost is estimated to be LMC = 2.4 + 0.001Q a. How many units should the manager produce and sell? b. How should the manager allocate the profit-maximizing output between the two markets? С. What prices should the manager charge in the two markets?

6. A manager faces two separate markets and decides to price-discriminate. The estimated demand functions for the two markets are: QA = 2,250 – 40PA Qв %3D 3,600 - 90Рв The long-run marginal cost is estimated to be LMC = 2.4 + 0.001Q a. How many units should the manager produce and sell? b. How should the manager allocate the profit-maximizing output between the two markets? С. What prices should the manager charge in the two markets?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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