Calculate the price elasticities of demand in both market

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Reference no: EM131109450

The demand functions faced by a firm in two different markets are: Q1 = 600 – 10 p1 and Q2 = 800 – 10 p2. The firm has constant marginal costs of production equal to $20.

-Write the profit function

-Find the optimal prices and output if the firm price discriminate in the third degree.

-Calculate the price elasticities of the demand in both markets.

-Find the optimal price under uniform pricing (ie. Set the same price in both markets)

Reference no: EM131109450

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