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American Eaglet sells surfing equipment in Los Angeles (LA) and Honolulu (Hon). The demand functions for each of these two groups are
QLA = 600 - 2.5PLA QHon = 800 - 4.0PHon
where Q is the number sold and P is the price of the equipment. The cost of providing Q units of the equipment is given by
C = 10,000 + 50Q where Q = QHon + QLA.
a. What is the profit-maximizing quantity for the Honolulu market?
b. What is the profit-maximizing price for the Honolulu market
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