What are the prices of pa and pb that maximize profits

Assignment Help Operation Management
Reference no: EM13253697

A monopolist sells Product A and Product B. A unit of Product A costs 5 dollars to procure while a unit for Product B costs 10 dollars to procure. Let PA be the selling price of Product A and PB be the selling price of Product B. And, let QA be the demand for Product A and QB be the demand for Product B. The two demands interact so that

QA=100 - 20PB - PA, and

QB=200 - 10PA - PB.

Profit = -1500 + 205PA - 30PAPB + 310PB - PB2 - PA2

a) What are the prices of PA and PB that maximize profits?
b) How much is sold of each product at these prices?

 

Reference no: EM13253697

Questions Cloud

Explain what is the percentage by mass of ch4 in the mixture : What is the percentage by mass of CH4 in the mixture. The standard enthalpies of combustion for CH4 and C2H6 are -890.3 kJ mol-1 and -1569.7 kJ mol-1, respectively.
Research terminology and design : Dynamic, continuous interaction between researchers and practitioners is required to advance evidence-based practice - Research Terminology and Design
Find the rms value of the magnetic field : The intensity of the sunlight that reaches Earth's upper atmosphere is approximately 1450 W/m2. Find the rms value of the magnetic field.
What are combustor inlet temperatur and turbine exhaust temp : A regenerative gas turbine has compressor and turbine discharge temperatures of 350K and 700K respectively. Draw and label schematic and T-S diagrams showing the relevant states.
What are the prices of pa and pb that maximize profits : A monopolist sells Product A and Product B. A unit of Product A costs 5 dollars to procure while a unit for Product B costs 10 dollars to procure.
Explain what is the standard enthalpy of formation of no : The standard enthalpy change for the reaction below is -905.4 kJ (for the reaction as written). What is the standard enthalpy of formation of NO(g)
Explain what are the mass and mole fraction of fuel : Write a balance reaction equation for the complete combution of carbon in air. What are the mass and mole fraction of fuel, air oxygen and notrogen in the reactants
Calculate the moons radial acceleration. : An undiscovered planet, many lightyears from Earth, has one moon in a periodic orbit. This moon takes 1710 * 10^3 seconds, calculate the moon\'s radial acceleration.
Describe the organizational culture that exists at apple : Discuss the layers and functions of organizational culture and the types of organizational culture and their associated characteristics.

Reviews

Write a Review

 

Operation Management Questions & Answers

  Which factors apply to the marketing being described

Which factors apply to the marketing being described in this scenario?

  How do you handle this as the sales leader

however, the market average for your industry is a 7-10% growth per year. The organization is not satisfied with this growth and wants a solution.

  What are the major threats to google''s ability

What are the major threats to Google's ability to serve its stakeholders

  Which strategic training and development initiatives

Which strategic training and development initiatives do you think all companies should support regardless of economic conditions? Why?

  What percent of our costs are materials

We measure productivity for labor. What do we use for materials? What percent of our costs are materials? How do we manage materials?

  Analyze the forces for and against maintaining

Given Pitney Bowes' growth and globalization strategies, analyze the forces for and against maintaining an organizational culture that supports diversity as a business impertive.

  What is the cw

What is the CW, when i=10% per year, of $1500 per year, starting in year one and continuing forever: and $10,000 in year five, repeating every four years thereafter, and continuing forever?

  List dimensions of planning and administration competency

List four dimensions of "Planning and Administration Competency" a manager should have in order to fulfill his/her managerial responsibilities.

  Discuss the key factors that impact location decisions

Discuss the key factors that impact location decisions. As an example, if locating a facility in India, what location decisions would a fast-food chain have to consider as compared to the location decisions of a software company?

  Why is high productivity important for a nation

Why is high productivity important for a nation and why do you suppose that service jobs have lower productivity than manufacturing jobs?

  You have heard from industry colleagues that they have a bad

You have heard from industry colleagues that they have a bad reputation for paying debts, claiming goods are defective and "not receiving" shipments.

  Identify the null and alternative hypotheses

You are the manager of the Gander Mountain store in Frogtown, Illinois. Recently, a customer mentioned that they believed your prices for ammunition were lower than the prices of Gander's primary competitor in the hunting equipment market, Cabela's.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd