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Suppose that a MiniChirp is a monopoly microchip manufacturer who faces the following de- mand curves for its product in two different countries: Australia (A) and New Zealand (NZ). Australia: QA 400 - PA, = 1 New Zealand: QNZ = 150 - PNZ where p; and Qi denote the price and quantity sold in country i respectively. Pi MiniChirp's cost function is given by c(Q) = 0.25(QA+QNZ)². Assume that resale between countries is not possible and that MiniChirp is a profit maximiser.

Suppose that a MiniChirp is a monopoly microchip manufacturer who faces the following de- mand curves for its product in two different countries: Australia (A) and New Zealand (NZ). Australia: QA 400 - PA, = 1 New Zealand: QNZ = 150 - PNZ where p; and Qi denote the price and quantity sold in country i respectively. Pi MiniChirp's cost function is given by c(Q) = 0.25(QA+QNZ)². Assume that resale between countries is not possible and that MiniChirp is a profit maximiser.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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How to find the prices, pA and pNZ, which maximise MiniChirp’s profits, assuming no capacity constraints?

Suppose that a MiniChirp is a monopoly microchip manufacturer who faces the following de- mand curves for its product in two different countries: Australia (A) and New Zealand (NZ). Australia: QA 400 - PA, = 1 New Zealand: QNZ = 150 - PNZ where p; and Qi denote the price and quantity sold in country i respectively. Pi MiniChirp's cost function is given by c(Q) = 0.25(QA+QNZ)². Assume that resale between countries is not possible and that MiniChirp is a profit maximiser.
Transcribed Image Text:Suppose that a MiniChirp is a monopoly microchip manufacturer who faces the following de- mand curves for its product in two different countries: Australia (A) and New Zealand (NZ). Australia: QA 400 - PA, = 1 New Zealand: QNZ = 150 - PNZ where p; and Qi denote the price and quantity sold in country i respectively. Pi MiniChirp's cost function is given by c(Q) = 0.25(QA+QNZ)². Assume that resale between countries is not possible and that MiniChirp is a profit maximiser.
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