Calculate the profit maximizing price and quantity

Assignment Help Econometrics

Reference no: EM131072398

A monopolist faces two distinct markets A and B for her product, and she is able to insure that resale is not possible. The demand curves in these markets are given by P = 20 - (1/4)QA and P = 14-(1/4)QB. The marginal cost is constant: MC = 4. There are no fixed costs.

(a) Calculate the profit maximizing price and quantity in each market.

(b) Compute the total profit made as a result of this discriminatory pricing.

Reference no: EM131072398

Questions Cloud

Calculate the equilibrium output if he discriminates perfect : Calculate the equilibrium output if he discriminates perfectly.

Savings will earn interest at interest rate : Mickey is planning to save $50,000 per quarter for 10 years. Savings will earn interest at an (nominal) interest rate of 12% per annum. Calculate the present value for this annuity if interest is compounded semi-annually.

Case study assumes that tools and parts can be moved : The model in this case study assumes that tools and parts can be moved concurrently to a machine. Modify the process model so that first the part is moved then the tool.

What are some possible policy alternatives : Who are the major stakeholders here? What are the values and interests of each of the stakeholders? How do you decide which stakeholders to include or exclude? What are the stories of the major stakeholders?

Calculate the profit maximizing price and quantity : Calculate the profit maximizing price and quantity in each market.

Using penetrating pricing strategy : Few years back, HP launched four new computer models aimed at the Chinese and Indian consumer markets to create loyal customers as these markets emerged. Using penetrating pricing strategy, HP priced the new computers under $400, significantly less t..

What is new divisor for the price-weighted index : Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $89, $400, and $96, respectively. If Baker undergoes a 2-for-1 stock split, what is the new divisor for the price-weighted index?

Validation evidence for the fms machine : Provide validation evidence for the FMS machine loading simulation based on the tool and machine utilization. Compute the expected utilization of each tool and machine type.

When maximizing profit, how much profit will she make : When maximizing profit, how much profit will she make?

User Account

All Pages