"Vitamin Strong" has the monopoly on the production of vitamin C. It faces geographically separated markets, denoted A and B. The demand on these two markets are respectively QA = 1-PA and QB = 0.5-PB. The transport and production costs are zero for simplicity. Suppose that the firm chooses to set a local prices for each of the two markets. In this case the optimal prices are PA and QB= (All numeric 11111' = _____ and PB- and would supply A-- PB... ----- answers rounded to two decimals) Blank # 1 N Blank # 2 Blank # 3 Blank # 4 N

"Vitamin Strong" has the monopoly on the production of vitamin C. It faces geographically separated markets, denoted A and B. The demand on these two markets are respectively QA = 1-PA and QB = 0.5-PB. The transport and production costs are zero for simplicity. Suppose that the firm chooses to set a local prices for each of the two markets. In this case the optimal prices are PA and QB= (All numeric 11111' = _____ and PB- and would supply A-- PB... ----- answers rounded to two decimals) Blank # 1 N Blank # 2 Blank # 3 Blank # 4 N

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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