Sal's satellite company broadcasts TV to subscribers in Los Angeles and New York. The demand functions for each of these two groups are QNY =40-0.2PNY QLA=80-0.5PLA where Q is in thousands of subscriptions per year and P is the subscription price per year. The cost of providing Q units of service is given by C = 1000 + 60Q where Q = QNY + QLA Suppose Sal can charge only a single price. %3D What price should he charge, and what quantities will he sell in New York? A. $115.71, 18 B. $130, 14 C. $110, 25 D. $115.71, 22

Sal's satellite company broadcasts TV to subscribers in Los Angeles and New York. The demand functions for each of these two groups are QNY =40-0.2PNY QLA=80-0.5PLA where Q is in thousands of subscriptions per year and P is the subscription price per year. The cost of providing Q units of service is given by C = 1000 + 60Q where Q = QNY + QLA Suppose Sal can charge only a single price. %3D What price should he charge, and what quantities will he sell in New York? A. $115.71, 18 B. $130, 14 C. $110, 25 D. $115.71, 22

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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