Assume that resale between countries is not possible and that MiniChirp is a profit maximiser. (a) Find the prices, pA and PNZ, which maximise MiniChirp's profits, assuming no capacity constraints. (b) Suppose that MiniChirp faces a capacity constraint of 250 units: (QA+QNZ ≤ 250). What price that MiniChirp will charge in each country? (c) Suppose that MiniChirp faces a capacity constraint of 125 units: (QA + QNZ ≤ 125). What price that MiniChirp will charge in each country? (d) Suppose that MiniChirp faces a capacity constraint of 20 units: (QA+QNZ ≤ 20). What is the lowest price that MiniChirp will charge in each country?

Assume that resale between countries is not possible and that MiniChirp is a profit maximiser. (a) Find the prices, pA and PNZ, which maximise MiniChirp's profits, assuming no capacity constraints. (b) Suppose that MiniChirp faces a capacity constraint of 250 units: (QA+QNZ ≤ 250). What price that MiniChirp will charge in each country? (c) Suppose that MiniChirp faces a capacity constraint of 125 units: (QA + QNZ ≤ 125). What price that MiniChirp will charge in each country? (d) Suppose that MiniChirp faces a capacity constraint of 20 units: (QA+QNZ ≤ 20). What is the lowest price that MiniChirp will charge in each country?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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