Calculate maximize total revenue, Managerial Economics

Assignment Help:

A city has two newspapers. Demand for either paper depends on its own price and the price of its rival. Demand functions for paper A & B respectively, measured in tens of thousands of subscriptions are

21 - 2PA + PB and 21 + PA - 2PB

The marginal cost of printing and distributing an extra paper just equals the extra advertising revenue one gets from another reader, so each paper treats Marginal costs as zero. Each paper maximizes its revenue assuming that the other's price is independent of its own choice of price. If the paper enter a joint operating agreement where they set prices to maximize total revenue, by how much will newspaper prices rise?

 

 


Related Discussions:- Calculate maximize total revenue

Structural unemployment - reason for protection, Structural Unemployment ...

Structural Unemployment The decline of the highly localized industry due to international trade causes great problems of regional (structural) unemployment.  If it would take

Homework, What market type does the company you work for operate under? Wha...

What market type does the company you work for operate under? What makes you think this? Do you think that this is the right market type for your company to operate in? Explain you

Decision tree construction of a fast food outlet, construct a decision tree...

construct a decision tree for the baked potatoes outlet using sales per day, number of days that quantity is sold together with selling prices per unit and average costs

Types of pricing, example problems for the types of pricing

example problems for the types of pricing

Disposable income, Disposable Income This is the income which househol...

Disposable Income This is the income which households actually have available to spend or to save.  To calculate disposal income, which is indicated by Ya, the statistician mu

Price, break event point

break event point

Development of skilled labour - external economies, Q. Development of Skill...

Q. Development of Skilled Labour - External Economies? As the industry grows training facilities for labour will increase. This helps development of skilled labour that would i

Properties of indifference curves, Properties of Indifference Curves ...

Properties of Indifference Curves An indifference curve is usually convex to the origin. Indifference curves slope downwards from left to right. A set

Write Your Message!

Captcha
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