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AUS manufacturer sells handbags in the UK and EU. The demand function is the same for both markets and is given by P 0.250), where the subscript and EU markets respectively. The variable P, denotes the price and Q, denotes monthly sales. Although the variable and fixed costs of manufacture are the same for each market, the EU now charges an extra tariff of $20 per bag so the joint total cost function is TC 500, +700,+6000. Find the price that should be charged in each market to maximise total profit. P₁-and P₂- CEDO

AUS manufacturer sells handbags in the UK and EU. The demand function is the same for both markets and is given by P 0.250), where the subscript and EU markets respectively. The variable P, denotes the price and Q, denotes monthly sales. Although the variable and fixed costs of manufacture are the same for each market, the EU now charges an extra tariff of $20 per bag so the joint total cost function is TC 500, +700,+6000. Find the price that should be charged in each market to maximise total profit. P₁-and P₂- CEDO

Calculus: Early Transcendentals
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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AUS manufacturer sells handbags in the UK and EU. The demand function is the same for both markets and is given by P,=300-0250,, where the subscript i takes the values 1 and 2 for the UK and EU markets respectively. The variable P, denotes the price and Q, denotes monthly sales. Although the variable and fixed costs of manufacture are the same for each market, the EU now charges an extra tariff of $20 per bag so the joint total cost function is TC 500, +70Q₂ + 5000. Find the price that should be charged in each market to maximise total profit. P₁-and P₂ -
Transcribed Image Text:AUS manufacturer sells handbags in the UK and EU. The demand function is the same for both markets and is given by P,=300-0250,, where the subscript i takes the values 1 and 2 for the UK and EU markets respectively. The variable P, denotes the price and Q, denotes monthly sales. Although the variable and fixed costs of manufacture are the same for each market, the EU now charges an extra tariff of $20 per bag so the joint total cost function is TC 500, +70Q₂ + 5000. Find the price that should be charged in each market to maximise total profit. P₁-and P₂ -
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