What prices should the firm charge in these markets

Assignment Help Econometrics

Reference no: EM13185410

Suppose that you are hired as consultant to a firm producing a therapeutic drug protected by a patent that gives a firm a monopoly in two markets. The drug can be transported between the two markets at no cost. The demand schedule in the first market is Q1=100-0.5P1, where P1 is the price of the product and Q1 is the amount sold in the market. In the seconds market, the demand is Q2=140-P2, where P2 is the price of the product and Q2 is the amount sold in the market. The firm's overall marginal cost is MC=20+Q1+Q2. What price(s) should the firm charge in these markets? What will be firm's profit?

Reference no: EM13185410

Questions Cloud

Professional standards movement in k-12 changed : How has the content and professional standards movement in K-12 changed the way educators teach students in America?

Irregular in sleeping and eating and resists change : According to Thomas and Chess, a child that is very irregular in sleeping and eating, resists change, and tends to be loud is labeled a(n) ___ child.

Simplify depreciation to be calculated as straight line : Simplify depreciation to be calculated as straight line over 30 years. It will be financed with a 30 year loan at 8% interest compounded annually with annual payments. It will be sold at the end of year 15 for $300,000, at whi..

Dichotic listening or the cocktail party phenomenon : Compare the experiences and comfort levels of each team member with dichotic listening, or the "cocktail party" phenomenon.

What prices should the firm charge in these markets : The demand schedule in the first market is Q1=100-0.5P1, where P1 is the price of the product and Q1 is the amount sold in the market. In the seconds market, the demand is Q2=140-P2, where P2 is the price of the product and Q2 is the amount sold i..

Word feedback thought of in negative way-behavioral approach : The aspect of the behavioral approach that I find is underused in the workplace is that of feedback. Unfortunately in our organizations today, the word feedback is thought of in a negative way.

Compare major dimensions of culture in thailand with the us. : Compare the major dimensions of culture in Thailand with the U.S.

Department of homeland security mission : United States: What do you feel is the most challenging aspect of the Department of Homeland Security (DHS) mission is? Explain your answer.

Form of modus poens and one in the form of modus tollens : Write two aruments in English, one in the form of modus poens and one in the form of modus tollens. Then write the arguments in symbols using sentence letters and truth-functional connectives.

User Account

All Pages