See the attahced photoFerdinand Sludge has just written a disgusting new book, Orgy in the Piggery. His publisher, Graw McSwill, estimates that the demand for this book in the United States is Q1 = 50 ,000 − 2,000P1, where P1 is the price in America measured in U.S. dollars. The demand for Sludge’s opus in England is Q2 = 10 ,000−500P2, whereP2 is its price in England measured in U. S. dollars. His publisher has a cost function C(Q) = 50,000 + 2Q, where Q is the total number of copies of Orgy that it produces..a. If McSwill can charge different prices different countries, and wants to maximize profits, how many copies should it sell in the United States and England? What are the respective prices?.b. In which country the price is the highest and why? Explain. Ferdinand Sludge has just written a disgusting new book, Orgy in the Piggery. His publisher,Graw McSwill, estimates that the demand for this book in the United States is Q₁ = 50,000 -2,000P1, where P₁ is the price in America measured in U.S. dollars. The demand for Sludge'sopus in England is Q2 = 10,000-500P2, whereP2 is its price in England measured in U. S.dollars. His publisher has a cost function C(Q) = 50,000+ 2Q, where Q is the total number ofcopies of Orgy that it produces.a. If McSwill can charge different prices different countries, and wants to maximizeprofits, how many copies should it sell in the United States and England? What are therespective prices?b. In which country the price is the highest and why? Explain.

The aim of every company is to maximise profits. A company can achieve this objective by selling the…

Answered: Ferdinand Sludge has just written a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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See the attahced photo
Ferdinand Sludge has just written a disgusting new book, Orgy in the Piggery. His publisher, Graw McSwill, estimates that the demand for this book in the United States is Q1 = 50 ,000 − 2,000P1, where P1 is the price in America measured in U.S. dollars. The demand for Sludge’s opus in England is Q2 = 10 ,000−500P₂, whereP2 is its price in England measured in U. S. dollars. His publisher has a cost function C(Q) = 50,000 + 2Q, where Q is the total number of copies of Orgy that it produces.

.a. If McSwill can charge different prices different countries, and wants to maximize profits, how many copies should it sell in the United States and England? What are the respective prices?

.b. In which country the price is the highest and why? Explain.

Ferdinand Sludge has just written a disgusting new book, Orgy in the Piggery. His publisher,
Graw McSwill, estimates that the demand for this book in the United States is Q₁ = 50,000 -
2,000P1, where P₁ is the price in America measured in U.S. dollars. The demand for Sludge's
opus in England is Q2 = 10,000-500P2, whereP2 is its price in England measured in U. S.
dollars. His publisher has a cost function C(Q) = 50,000+ 2Q, where Q is the total number of
copies of Orgy that it produces.
a. If McSwill can charge different prices different countries, and wants to maximize
profits, how many copies should it sell in the United States and England? What are the
respective prices?
b. In which country the price is the highest and why? Explain.

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