Wakanda is a firm that solely supplies vibranium to Marley and Paradis. The demand function of the Marley market is given as Qm=110-Pm , and the demand function of the Paradis market is Qp=30-Pp . Wakanda's total cost in producing vibranium is given as TC=100+10Q , where represents a ton of vibranium. 4. Assuming that Wakanda can price discriminate between Marley and Paradis market, calculate its total profits. 5. Compute the mark up price on each market and interpret the results.
Wakanda is a firm that solely supplies vibranium to Marley and Paradis. The demand function of the Marley market is given as Qm=110-Pm , and the demand function of the Paradis market is Qp=30-Pp . Wakanda's total cost in producing vibranium is given as TC=100+10Q , where represents a ton of vibranium. 4. Assuming that Wakanda can price discriminate between Marley and Paradis market, calculate its total profits. 5. Compute the mark up price on each market and interpret the results.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Wakanda is a firm that solely supplies vibranium to Marley and Paradis. The demand
function of the Marley market is given as QM=110-PM , and the demand function of the
Paradis market is Qp=30-Pp . Wakanda's total cost in producing vibranium is given as
TC=100+10Q , where represents a ton of vibranium.
4. Assuming that Wakanda can price discriminate between Marley and Paradis market,
calculate its total profits.
5. Compute the mark up price on each market and interpret the results.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F76bf55dc-08b2-4a51-9ebf-7a4453ba452a%2F476d9f2d-c461-4094-adde-ac118c76b126%2Fpzv2uw4_processed.png&w=3840&q=75)
Transcribed Image Text:Wakanda is a firm that solely supplies vibranium to Marley and Paradis. The demand
function of the Marley market is given as QM=110-PM , and the demand function of the
Paradis market is Qp=30-Pp . Wakanda's total cost in producing vibranium is given as
TC=100+10Q , where represents a ton of vibranium.
4. Assuming that Wakanda can price discriminate between Marley and Paradis market,
calculate its total profits.
5. Compute the mark up price on each market and interpret the results.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education