Optimal prices for the hardware and software firm to charge

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Market demand for laptop computers is y = 500 - 2p. But the computers are developed by a hardware firm with a cost function c(y) = 10y + 100, & the operating system is developed by a software firm with a cost function of c(y) = 150.

a. Calculate the optimal prices for the hardware & software firm to charge, & the total market quantity.

b. Calculate the optimal price & quantity if it were to behave like a merged firm.

Reference no: EM13888645

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