Determine total profit function

Assignment Help Managerial Economics

Reference no: EM1372248

Consolidated Sugar corporation sells granulated sugar to both retail grocery chains and commercial users (e.g., bakeries, candy makers, etc.). The demand function for each of these markets is:
Retail grocery chains: P1 = 90 - 4q1
Commercial users: P2 = 50 - 2q2
where P1 and P2 are the prices charged and q1 and q2 are the quantities sold in the respective markets. Consolidated's total cost function (which includes a "normal" return to the owners) for granulated sugar is
TC = 25 + 10(q1 + q2 )

(a) Determine Consolidated's total profit function.

(b) Assuming that Consolidated is effectively able to charge different prices in the two markets, what are the profit-maximizing price and output levels for the product in the two markets? What is Consolidated's total profit under this condition?

(c) Assuming that Consolidated is required to charge the same price in each market, what are the profit-maximizing price and output levels? What is Consolidated's total profit under this condition?

Reference no: EM1372248

Questions Cloud

Provide polynomial-time algorithm to decide in graph : Provide a polynomial-time algorithm to decide whether G has unique minimum s - t cut (i.e., an s - t cut of capacity strictly less than that of all other s - t cuts).

What are factors that shift supply curve for this good : What are factors that shift supply curve for this good. How do you expect supply and demand of your selected good to change in next year. Relate your expectation to price and quantity.

Find out the average speed and velocity : If the baseball exerts the force of 464N on the glove such that the glove is displaced 5.9 cm, how much work is done by the ball.

Explain this seeming contradiction : When one person saves, that person's wealth is increased, meaning that he or she can consume more in future. But when everyone saves, everyone's income falls, meaning that everyone must consume less today. Explain this seeming contradiction.

Determine total profit function : Consolidated Sugar corporation sells granulated sugar to both retail grocery chains and commercial users the demand function for each of these markets is;

What is the speed of the shell at this time : A glucose-winged gull, ascending straight upward at 5.20 m/s drops a shell when it is 12.5 m above ground.

Describe graphical user interfaces during operation : Describe some of graphical user interfaces (GUIs) and communications messages which happen during operation of a microwave.

What is an implication of pattern shown : What are data in table saying. What is an implication of pattern shown. What are data in table saying. What is an explanation for pattern shown.

Find marginal cost at the profit maximizing output : A monopolist produces a single homogeneous good, which he sells in two marketplace between which discrimination is possible. His total cost function is;

User Account

All Pages