Market consists of two population segments

Assignment Help Business Economics

Reference no: EM131074938

A market consists of two population segments, A and B. An individual in segment A has demand for your product q = 50 – p. An individual in segment B has demand for your product q = 120 – 2p. Segment A has 1000 people in it. Segment B has 1200 people in it. Total cost of producing q units is C = 5000 + 20q.

Assume that you must charge the same price to both segments. What is the profit-maximizing price? What are your profits?

Imagine now that members of segment A all wear a scarlet “A” on their shirts or blouses and that you can legally charge different prices to these people. What price do you charge to the scarlet “A” people? What price do you charge to those without the scarlet “A”? What are your profits now?

Reference no: EM131074938

Questions Cloud

Time-frame at hand is sufficient for inputs to be variable : If the time-frame at hand is sufficient for all inputs to be variable (adjustable), then the firm is

Rights of both business owners and of employees : Do you agree with the outcome of theHobby Lobbycase? Discuss what rights if any were given to businesses by the Supreme Court in Hobby LobbyandCitizens United. Explain how these two decisions may affect the rights of both business owners and of emplo..

Find the symmetric nash equilibrium : Consider a market that consists of n ≥ 2 identical firms. Each firm produces output at a constant average and marginal cost of 2. The market demand curve in this industry p = 20 – 2Q, where Q is market demand and p is price. Firms will choose output ..

Explain hypothesis for combating illegal immigration to u.s. : Research the Argosy University online library resources to examine the issues of illegal immigration in the United States and cite and document the sources you find to establish your researched facts. Ensure you provide enough content to thoroughl..

Market consists of two population segments : A market consists of two population segments, A and B. An individual in segment A has demand for your product q = 50 – p. An individual in segment B has demand for your product q = 120 – 2p. Segment A has 1000 people in it. Segment B has 1200 people ..

Swirl of conflicting cross-currents : The U.S. government's expansive role in public policy iscaught in a swirl of conflicting cross-currents. On the one hand, popularexpectations about government's responsibility to solve problems often exceedthe capacity of state and local authoriti..

Drawing on current business publications : Drawing on current business publications and using the opening case of the chapter as a guide, discuss how the slow economic recovery in 2011 and 2012 has affected the current strategies of firms other than those mention in the case.

Evaluate the best approaches to managing stress : Explain factors that have been found to contribute to stress in a law enforcement agency. Evaluate the best approaches to managing stress in a law enforcement agency.

Company plans to start sinking fund : A company plans to start a sinking fund so that it will have money to purchase a new 18-wheeler ten years from now. The cost of the truck is expected to be $200,000 and the company uses an interest rate of 10% per year. If the company makes the first..

User Account

All Pages