quantity pricing, Microeconomics

Assignment Help:
1. Sam Smith owns an internet radio company that has subscribers in Houston and Dallas. The demand functions for the 2 markets are:
Q(Houston) = 50-0.35P(Dallas)
Q(Dallas) = 80-0.40P(Houston) Quantities are in thousands of subscriptions per year.
The cost of providing internet radio service is TC = 800+50Qt

a. What price should Sam charge and how many subscribers will he have if he treats Houston and Dallas as one market?
b. What is the total quantity of subscribers for one market?
c. What is the quantity in the Houston market?
d. What is the quantity in the Dallas market?
e. What prices should Sam charge and what are the associated quantities if he wants to maximize profits?

Related Discussions:- quantity pricing

What is laffer curve, What is Laffer curve The Laffer curve is named af...

What is Laffer curve The Laffer curve is named after Professor Art Laffer who suggested that as taxes enhanced from fairly low levels, tax revenue received by the government wo

Production function curve, different types of production funtion and curve ...

different types of production funtion and curve given by different economist

represent the effect of an proportional tax on labor income, 1. Consider a...

1. Consider an individual facing a wage rate w . There's a total of 100 hours available for work or leisure in a week. (a) Represent his budget constraint graphically (b)

Monopoly, if the inverse demand curve is p=120-Qand the marginal cost is co...

if the inverse demand curve is p=120-Qand the marginal cost is const ant at 10 ,

Public-private partnerships, Public-Private Partnerships (PPPs):A form of f...

Public-Private Partnerships (PPPs):A form of financing public investment and sometimes the direct provision of public services, in that finance is provided by private investors (in

Supply, concept of supply and the factors that affect the supply

concept of supply and the factors that affect the supply

Risk aversion and indifference curve, Risk Aversion and Income - Variab...

Risk Aversion and Income - Variability in potential payoffs increases risk premium. - Example: A job has a .5% probability of paying $40,000 (utility of 20) and a 5 p

Unemployment, causes and effect of the unemployment

causes and effect of the unemployment

Public administration-delivery mechanism, Public Administration: Accor...

Public Administration: According to L.D. White, "Public administration consists of all those operations having for their purpose the fulfillment or enforcement of public polic

Microeconomics and the market system, Suppose you are a painter, and the pr...

Suppose you are a painter, and the price of a gallon of paint increases from $3.00 a gallon t $3.50 a gallon. Your usage of paint drops from 35 gallons to 20 gallons a month. 1. Co

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