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Price Discrimination: Apple Inc., is about to release the Apple Watch. The demand for the Apple Watch in the Bay Area is P = 5,000 - 2Q. Marginal and average costs for producing the Apple Watch is a flat $200.

a) If Apple chooses to sell the watch to everyone at the same price, how many will it sell and at what price? What will be its profits? 

b) If Apple chooses to sell the watch to separate blocks of consumers, how many will it sell to each and what will the price be for each block of consumers? What will be the profits. (Use calculus)

Reference no: EM131709452

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