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

Homework, Which of the following has not occurred over time in the past sev...

Which of the following has not occurred over time in the past several decades in the physician services market? A. The level of competition has increased. B. Economies of scale ha

Arc elasticity of demand, Arc Elasticity of Demand - Arc elasticity cal...

Arc Elasticity of Demand - Arc elasticity calculates elasticity over the range of prices  - The formula of it is: *  Arc Elasticity of Demand: An Example

Given Qd=3-P^2, Yao''s weekly demand for basketballs is given by Qd = 3-P^2...

Yao''s weekly demand for basketballs is given by Qd = 3-P^2 where P is the price of basketballs. At the current price, Yao''s demand for basketballs is unit elastic. What is the cu

Natural environment for economics, Q. Natural environment for economics? ...

Q. Natural environment for economics? Environment: The natural environment is an essential aspect of the economy, whose influence is felt in several different ways. Everyone

Global business etiquette, Your company has a product that it is interested...

Your company has a product that it is interested in marketing in a foreign country. Using one of the following Websites, click on a country of your choice to learn about Etiquette,

Growth of employment opportunities, GROWTH OF EMPLOYMENT OPPORTUNITIES: ...

GROWTH OF EMPLOYMENT OPPORTUNITIES: Several disquieting features are observed in the Indian labour market over the past two decades particularly during the 1990s. These are di

Demand and consumer, relationship between total utilities and marginal util...

relationship between total utilities and marginal utilities

What is international monetary fund, Q. What is International Monetary Fund...

Q. What is International Monetary Fund? International Monetary Fund: An international financial institution established after World War II with the goal of stabilizing and regu

Perfect competition, Perfect competition: Perfect completion refers to...

Perfect competition: Perfect completion refers to the market structure in which there are a large number of relatively small firms, each firm having freedom of entry into and

Unemployment, unemployment is voluntary, discuss in view of the classical e...

unemployment is voluntary, discuss in view of the classical economists and the keynesian

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