Bega Cheese is the only producer of Vegemite (an Australian delicacy), i.e., Bega is the monopoly seller of Vegemite. Suppose the demand (measured in millions of jars) for Vegemite in Victoria (one of the states) is given by Dv (p) = 10 - p, where p is the price per jar. (a) What is the price that maximizes the revenue from sales in Victoria? Bega also sells Vegemite in the other states. Suppose the demand for Vegemite in the other states is given by Do(p) = 20 - 5p. Finally, assume that Bega must sell Vegemite at the same price in all states.

Bega Cheese is the only producer of Vegemite (an Australian delicacy), i.e., Bega is the monopoly seller of Vegemite. Suppose the demand (measured in millions of jars) for Vegemite in Victoria (one of the states) is given by Dv (p) = 10 - p, where p is the price per jar. (a) What is the price that maximizes the revenue from sales in Victoria? Bega also sells Vegemite in the other states. Suppose the demand for Vegemite in the other states is given by Do(p) = 20 - 5p. Finally, assume that Bega must sell Vegemite at the same price in all states.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

(b) If Bega sells Vegemite at the price you found in part 1a, how much Vegemite does Bega
sell in the other states?
(c) What is the price that maximizes the revenue from sales in all of Australia (and not just
Victoria)?

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