Suppose the profit maximizing firm sells the same good in two individual markets that it is able to keep separate. Since the price elasticity of demand is different in each market, the firm recognizes that rather than charge all customers the same price, it can increase profits by charging different prices in each of the two markets. The demand equations for each market are shown below: Market 1 P=25-2Q Demand The firm's Total Cost Function is: TC=5Q a) What is the optimal output in Market 1? b) What price will be charged in Market 1? Market 2 P=15-Q c) what is the optimal output in market  d) what price will be charged in market  e) what is the firm's total profit  f ) illustrate your answer

Q: Project #1: Parts I, II & III: The demand function for a product is p = 30 – 0.3q and the average…

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: The manufacturer of an energy drink spends $1.28 to make each drink and sells them for $3.27. The…

A: Given information: A manufacturer of energy drinks spends $1.28 to make each drink and sells them…

Q: Cost is in dollars and x is the number of units. Find the marginal cost functions MC for the given…

A: 5) Given Total profit function:P(x) = 7x - 24Marginal Profit(MP) = 7The next unit sold earns this…

Q: b Now suppose Q = 2L +3K. Let the market price of L be w = 5 and the price of K be r = 4. Let both L…

A: b) Suppose the production function is Q = 2L + 3K, where Q represents the output quantity, L is the…

Q: business sells items according to the following Cost and Revenue functions:…

A: * SOLUTION :-

Q: A company that produces healthcare services (patient visits) operates with the following production…

A: New Production function : q =  L0.25 K0.5Price of K = rPrice of L = w Cost constraint :  C =  wL +…

Q: P=1,000-0.0025Q where Q is the number of wine decanters produced monthly. Bavarian Crystal Works…

A: P = 1,000 - 0.0025Q There is a lease payment of $1,000,000 which is a fixed cost as lease and rent…

Q: A local microbrewery has total costs of production given by the equation TC=500+10q+5q^2. This…

A: Total cost equation,TC=500+10q+5q2Marginal cost equation, MC=10+10qDemand function, Qd=105-12P

Q: A firm's demand and total cost function are given by the expression: P = 20 - Q/2         (1) TC =…

A: Revenue-maximization is the process of strategically determining the output level at which a…

Q: What is the short-run shutdown price, the price below which the firm chooses to shut down…

A: Shut Down price: In the short run as the firm faces the total fixed cost as well. And a firm will…

Q: Adriana Caselotti's company developed a new product ten years ago. Ever since, Adriana has managed…

A: Production cost describes the total expenses incurred by a firm in the process of creating goods or…

Q: A firm has a linear demand function for it's product.When the price for the product is Sh.220,the…

A: At price of 220 and the quantity demanded is 40 units. At price of 240, the quantity demanded…

Q: The inverse demand for tea is given by P = 12 – 0.03Q, where Pis the price per a gram of tea and Qis…

A:

Q: A firm’s price and cost equations are given by P = 200 - 0.2Q and TC = 1,000 + 40Q, respectively.…

A: According to question given that price(demand ) equation and total cost equation, using both we can…

Q: The inverse demand for shampoo is P = 30 – 0.03Q, where P is the price per bottle in dollars and Q…

A: Step 1:Inverse demand refers to the relationship between the price of a good or service and the…

Q: There is a firm making custom stuffed animals. The demand function for custom stuffed animals is: P…

A: Profit maximization is a fundamental concept in economics and business management that refers to the…

Q: If a firm's marginal cost is greater than its average variable cost, what can be inferred about the…

A: To resolve this inquiry, it's vital to initially understand what marginal cost (MC) and average…

Q: Bavarian Crystal Works designs and produces crystal wine decanters for export to international…

A: The equilibrium price and equilibrium quantity of a good sold in the market are determined by the…

Q: For a certain company, the cost function for producing x items is C(x)=40x+150 and the revenue…

A: “Since you have posted multiple questions, we will provide the solution only to the first question…

Q: Question (4): Consider a firm, where there is competition, looking to maximize its profits and the…

A: The problem outlined is a scenario analysis for a firm operating in a competitive market aiming to…

Q: Consider a manufacturer making leather cases with a market demand function (weekly) given by…

A: Profit refers to the difference between total revenue and total costs when producing and selling a…

Q: A firm has fixed costs of $80,000 associated with the manufacture of lawn mowers that cost $200 per…

A: Total cost is the sum of Fixed and variable cost. Total revenue is price multiplied by quantity.…