A wholesaler produces a good which is sold directly to consumers and to retailers. The demand curve functions for consumers and retailers are, respectively, P1= 40-0.4Q1 P2 30-0.1Q2 The firm's total cost function is: TC= 220 + 120 Calculate the output and price in each market and profit of each firm when there is price discrimination.

A wholesaler produces a good which is sold directly to consumers and to retailers. The demand curve functions for consumers and retailers are, respectively, P1= 40-0.4Q1 P2 30-0.1Q2 The firm's total cost function is: TC= 220 + 120 Calculate the output and price in each market and profit of each firm when there is price discrimination.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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