ar's satellite company broadcasts IV to subscribers in LOS Angeles and New York. The demand functions for each of these two groups are: QNY = 60 - 0.25PNY QLA = 100 – 0.5PLA here Q is in thousands of subscriptions per year and P is the subscription price per year. The cost of providing Q units of service is given by C = 1000 + 40Q where Q = QNY + QLA: . What are the profit-maximizing prices and quantities for the New York and Los Angeles markets? (round all answers to two decimal places) In New York, the equilibrium quantity is subscribers at an equilibrium price of $ While in Los Angeles, the equilibrium quantity is subscribers at an equilibrium price of $

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Sal's satellite company broadcasts TV to subscribers in Los Angeles and New York. The demand functions for each of these two groups are:
QNY
= 60 – 0.25PNY
QLA
= 100 – 0.5PLA
where Q is in thousands of subscriptions per year and P is the subscription price per year. The cost of providing Q units of service is given by
C = 1000 + 40Q
where Q = QNY + QLA:
a. What are the profit-maximizing prices and quantities for the New York and Los Angeles markets? (round all answers to two decimal places)
In New York, the equilibrium quantity is
subscribers at an equilibrium price of $.
While in Los Angeles, the equilibrium quantity is subscribers at an equilibrium price of $.
Transcribed Image Text:Sal's satellite company broadcasts TV to subscribers in Los Angeles and New York. The demand functions for each of these two groups are: QNY = 60 – 0.25PNY QLA = 100 – 0.5PLA where Q is in thousands of subscriptions per year and P is the subscription price per year. The cost of providing Q units of service is given by C = 1000 + 40Q where Q = QNY + QLA: a. What are the profit-maximizing prices and quantities for the New York and Los Angeles markets? (round all answers to two decimal places) In New York, the equilibrium quantity is subscribers at an equilibrium price of $. While in Los Angeles, the equilibrium quantity is subscribers at an equilibrium price of $.
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