Given for question #1Cost function C= 3000+6QQ = 4400 - 200Q - This is the demand functionQ= 1600 P = 14Profit= 22400-12600 = 9800 Please Provide the Answer for question #2 A and B2. 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 breakdown 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? (Profit Maximization with no price discriminationYou are running a (small) chain of gourmet burger joints with two locations (San Antonio and Laredo)You have been charging $10 for your burger meal (fries, burger and soft drink). Across both locations,you sell 2400 meals per week at this price. When you raised the price to $13 for the burger meal, yoursales across the two locations fell to 1800 meals per week. For your costs, you have fixed costs of $3000per week across the two locations. In addition, it costs you six dollars per burger in variable costs(ingredients, labor etc.)1.A. What is your combined cost function across the two locationsB.Using the two prices above, estimate your combined demand function across the two locationsC.Using the combined demand function and cost function calculated above, calculate the profitmaximizing price and quantityD. What are your (combined) weekly profits across the two locations?E. 2. Demand across the two locationsAfter taking your managerial economics class, you realize that you can probably raise yourprofits by price discriminating by charging different prices in the two locations. You thenbreakdown sales across the two locations. In Laredo: You sold 960 burger meals per week at $10and 600 meals at $13. In San Antonio: You sold 1440 meals per week at $10 and 1200 meals at$13A. Using the two prices above, estimate your demand function in Laredo. What would demand beat the optimal price from Q1B. Using the two prices above, estimate your demand function in San Antonio. What would demandbe at the optimal price from Q1?

The demand function shows the relationship between quantity demanded and price. The cost function…

Answered: After taking your managerial economics…

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

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Given for question #1

Cost function C= 3000+6Q
Q = 4400 - 200Q - This is the demand function
Q= 1600 P = 14
Profit= 22400-12600 = 9800

Please Provide the Answer for question #2

A and B

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 breakdown 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?

(Profit Maximization with no price discrimination
You are running a (small) chain of gourmet burger joints with two locations (San Antonio and Laredo)
You have been charging $10 for your burger meal (fries, burger and soft drink). Across both locations,
you sell 2400 meals per week at this price. When you raised the price to $13 for the burger meal, your
sales across the two locations fell to 1800 meals per week. For your costs, you have fixed costs of $3000
per week across the two locations. In addition, it costs you six dollars per burger in variable costs
(ingredients, labor etc.)
1.
A. What is your combined cost function across the two locations
B.
Using the two prices above, estimate your combined demand function across the two locations
C.
Using the combined demand function and cost function calculated above, calculate the profit
maximizing price and quantity
D. What are your (combined) weekly profits across the two locations?
E. 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
breakdown 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?

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