What is the profit-maximizing price for the honolulu market

Assignment Help Business Economics

Reference no: EM131204158

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

a. What is the profit-maximizing quantity for the Honolulu market? C=10,000+50Q whereQ=QHon +QLA.

b. What is the profit-maximizing price for the Honolulu market?

c. Based on the facts above, briefly explain whether the profit-maximizing price in Los Angeles would be the same or different than the price in Honolulu (no additional calculations are necessary).

Reference no: EM131204158

Questions Cloud

Marginal cost functions : If the wage rate is w, what are the total cost, average cost, and marginal cost functions?

Find the current through and voltage across the resistor rl : Using the dual of Millman's theorem, - find the current through and voltage across the resistor RL of given figure.

Identify the impact that technology has had in assisting you : Identify the impact that technology has had in assisting you in pursuing your personal financial goals. Provide at least two examples to support your rationale.

For what value of t is a nash equilibrium : Can (Evade, Audit) ever be a Nash equilibrium? What does this imply about the punishment structure?

What is the profit-maximizing price for the honolulu market : 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. What is the ..

What is the reaction function for anderson : Anderson and Kay are two individuals who one day discover a stream that flows wine cooler instead of water. Anderson and Kay decide to bottle the wine cooler and sell it. The marginal cost of bottling wine cooler and the fixed cost to bottle wine coo..

Difference between a company and an industry : Kindly assist me know this,what is the difference between a company and an industry?

Determine the equilibrium price and sales : The inverse demand curve for product X is given by: PX = 25 - 0.005Q + 0.15PY, where PX represents price in dollars per unit, Q represents rate of sales in pounds per week, and PY represents selling price of another product Y in dollars per unit. The..

Urban growth boundaries affected : How has Oregon's use of Urban Growth Boundaries affected: i.) overall residential development?

User Account

All Pages