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
Problem: i) Differentiate between economic development and economic growth. ii) Describe carefully how, using the expenditure approach, national income is calculated. ii

Q. Perfect Competition in neoclassical economics? Perfect Competition: An abstract assumption, central to neoclassical economics, in that companies are so small that none can i

Lakshani has $5 to spend on pens and pencils. Each pen costs $0.50 and each pencil costs $0.10. She is thinking about buying 6 pens and 20 pencils. The last pen would add five time

3.Cost Minimization for Cobb-Douglas. Suppose the Acme Gumball Company has the produc- tion function of q=LK. Given that the MPL=K, MPK=L and MRT S=MPL/MPK. Part a-b, we are anal

Name the two actors in the basic neoclassical (or traditional microeconomic) model of economics, and identify the assumptions the model makes of these two actors. Firms and hou

Features of bureaucracy: Impersonal Order: The authority is inherent in the post and not the individual who performs the official role. An official is supposed to have a det

How has the haberler''s theory of opportunity cost an improvement over the classical theory of trade

plese give me supply assigement

Business sell to households in the resource markets, but households sell to businesses in the product market

Question: (a) With reference to the characteristics of market structure, describe why the market for powdered milk in Mauritius is an appropriate example of monopolistic compe