Suppose that demand equals: P 1,000 - Qs - Q,; where Qs and Q, are quantities sold, and P is the selling price. The cost functions for the respective firms are: TC 70,000 + 5Q + 0. 25Q²5 TC, = 110,000 +5Q, + 0.15Q², %3D
Suppose that demand equals: P 1,000 - Qs - Q,; where Qs and Q, are quantities sold, and P is the selling price. The cost functions for the respective firms are: TC 70,000 + 5Q + 0. 25Q²5 TC, = 110,000 +5Q, + 0.15Q², %3D
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter14: Pricing Techniques And Analysis
Section: Chapter Questions
Problem 3E
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Question
![how do you solve for profit to get optimal level
for both firms and optimal selling price?
Suppose that demand equals: P = 1,000 - Q - Q, ; where Q, and
Q, are quantities sold, and P is the selling price.
The cost functions for the respective firms are:
TC; = 70,000 + 5Qs + 0. 25Q?s
%3D
TC, = 110,000 + 5Q, + 0.15Q²,](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1769372a-3f68-4a01-b92b-615bf84ca129%2F133b58cf-8e3a-4c6b-a340-73854abc86c4%2Fl473rof_processed.jpeg&w=3840&q=75)
Transcribed Image Text:how do you solve for profit to get optimal level
for both firms and optimal selling price?
Suppose that demand equals: P = 1,000 - Q - Q, ; where Q, and
Q, are quantities sold, and P is the selling price.
The cost functions for the respective firms are:
TC; = 70,000 + 5Qs + 0. 25Q?s
%3D
TC, = 110,000 + 5Q, + 0.15Q²,
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