Illustrate what is the profit maximizing quantity

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Reference no: EM1345495

Q1. A manager faces two separate markets (A and B) for the same product. The estimated demand functions are given below:

Qa = 2000 - 100 Pa
Qb = 3000 - 125 Pb

If the manager has 1000 units to sell, how many units of the product should be sold in Market A?

Q2. A manager faces two separate markets (A and B) for the same product. The estimated demand functions are given below:

Qa = 2000 - 100 Pa
Qb = 3000 - 125 Pb

Now assume that the manager can produce any amount of the product at a MC of $10 per unit, how many units should be sold to Group A?

Q3. A manager faces two separate markets (A and B) for the same product. The estimated demand functions are given below:

Qa = 2000 - 100 Pa
Qb = 3000 - 125 Pb

Now assume that the manager can produce any amount of the product at a MC of $10 per unit, what price should be charged to Group A?

Q4. A manager faces two separate markets (A and B) for the same product. The estimated demand functions are given below:

Qa = 2000 - 100 Pa
Qb = 3000 - 125 Pb

Now assume that the manager can produce any amount of the product at a MC of $10 per unit, illustrate what is the profit maximizing quantity that should be offered to Group B?

Q5. A manager faces two separate markets (A and B) for the same product. The estimated demand functions are given below:

Qa = 2000 - 100 Pa
Qb = 3000 - 125 Pb

Now assume that the manager can produce any amount of the product at a MC of $10 per unit, what price should be charged to Group B?

Reference no: EM1345495

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