A profit maximizing firm produces a single product that it sells in two distinct markets 1 & 2. The demand and cost functions for the firm are given below. Q1 = 21- 0.10P Q2 = 50 - 0.40P TC = 2000 + 10Q where Q = Q1 + Q2 Find the equilibrium quantities transacted and the prices charged in each market.
A profit maximizing firm produces a single product that it sells in two distinct markets 1 & 2. The demand and cost functions for the firm are given below. Q1 = 21- 0.10P Q2 = 50 - 0.40P TC = 2000 + 10Q where Q = Q1 + Q2 Find the equilibrium quantities transacted and the prices charged in each market.
Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter11: Price-searcher Markets With High Entry Barriers
Section: Chapter Questions
Problem 14CQ
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A profit maximizing firm produces a single product that it sells in two distinct markets 1 & 2. The
demand and cost functions for the firm are given below.
Q1 = 21- 0.10P
Q2 = 50 - 0.40P
TC = 2000 + 10Q where Q = Q1 + Q2
Find the equilibrium quantities transacted and the prices charged in each market.
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