Is sufficient data to determine profit maximizing price

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Reference no: EM131241190

You face a market of 30,000 buyers divided into 2 segments (A and B). The two segments are potentially different. From each segment you have picked a random sample and offered them a price. Here are the results:

1. Segment A: A random sample of 1000 from a population of 10,000 was offered a price of $60. Of the sample, 200 indicated they would buy at this price and the remainder said they would not.

2. Segment B: A random sample of 15,000 from a population of 20,000 was offered a price of $20. Of the sample 4,000 indicated they would buy at this price and the remainder said they would not.

Assume that the demand curve(s), as usual, is a straight line. The unit cost of production is $15. Is there sufficient data to determine profit maximizing price? If yes, derive the demand curve in the market. If not, in what way is the data deficient? Reasons specific to the problem rather than generic are preferred.

Reference no: EM131241190

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