Question 1 The demand functions for a firm's domestic and foreign markets are: P₁ = 390 - 6Q1 P₂ = 200-5Q2 and the total cost function is TC = 130 + 10Q, where Q = Q₁ + Q₂. Determine the price needed to maximize profit without price discrimination and the quantities at the maximum profit point. Note: Explore in the book the differences between the scenarios with and without price discrimination. P = Blank 1 Q1 = Blank 2 Q2 = Blank 3 Note: do not round until the final answer. Then round to the nearest integer. Blank 1 Add your answer Blank 2 Add your answer Blank 3 Add your answer

Question 1 The demand functions for a firm's domestic and foreign markets are: P₁ = 390 - 6Q1 P₂ = 200-5Q2 and the total cost function is TC = 130 + 10Q, where Q = Q₁ + Q₂. Determine the price needed to maximize profit without price discrimination and the quantities at the maximum profit point. Note: Explore in the book the differences between the scenarios with and without price discrimination. P = Blank 1 Q1 = Blank 2 Q2 = Blank 3 Note: do not round until the final answer. Then round to the nearest integer. Blank 1 Add your answer Blank 2 Add your answer Blank 3 Add your answer

Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter23: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 7CQ

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