Determine the profit maximizing price and quantity, Microeconomics

Determine the profit maximizing price and quantity

A firm has segmented its market into the following demand functions:

P1 = 500 – 50Q     P2 = 500 – 20Q     with a cost function:  MC=AC =20 

a. Determine the profit maximizing price and quantity and corresponding economic profits if the firm charges all customers the same price.
b. Determine the profit maximizing prices and quantities and corresponding economic profits if it practices third-degree price discrimination.
c. What are the conditions necessary for price discrimination to succeed?

Posted Date: 2/15/2013 2:39:33 AM | Location : United States







Related Discussions:- Determine the profit maximizing price and quantity, Assignment Help, Ask Question on Determine the profit maximizing price and quantity, Get Answer, Expert's Help, Determine the profit maximizing price and quantity Discussions

Write discussion on Determine the profit maximizing price and quantity
Your posts are moderated
Related Questions
Circular Flow of Income: The diagram shows Real Flow (goods and services) and Monetary Flow (Income and expenditure). The bottom pair of arrows depicts the goods market.

pooling in insurance

Would a risk loving person prefer an increase in the chance of winning the lottery by 20% or an increase in the jackpot of 20%

my assignment is about richardian model and wanna ask you about few questions

Create a chart with a secondary vertical axis to plot related data series with different scales. Use the Combination Chart Fashion worksheet to create and format a combination c

Environmental Scan SWOT analysis: SWOT analysis will help to describe about the strengths, weakness, opportunities as well as threats. This is the strategic planning method

Normal 0 false false false EN-IN X-NONE X-NONE MicrosoftInternetExplorer4

how the equilibrium output and price is determined in williamson model of managerial discretion?

Choosing Output in Long Run * In long run, a firm can change all its inputs, including size of the plant. * We are taking free entry and free exit. * Accounting

DEMOGRAPHIC PROFILE: A demographic profile of India can be prepared out of the data collected by the office of the Registrar General of India who is the responsible authority