Profit Maximization
Not what you're looking for?
A monopolistic firm operates in two seperate makets. No trade is possible between market A and market B. The firm has calculated the demand functions for each market as follows:
Market A p = 15 -Q
Market B p = 11 -Q
The company estimates its total cost function to be:
TC = 4Q Calculate:
a. Quantity, total revenue and profit when the company maximizes its profit and charges the same price in both markets.
b. Quantity, total revenue and profit when the company charges different prices in each market and maximizes its total profit.
Please show calculations it is very helpful for me as I have difficulty with the math.
Purchase this Solution
Solution Summary
Word documents contains calculations of:
Calculate:
a. Quantity, total revenue and profit when the company maximizes its profit and charges the same price in both markets.
b. Quantity, total revenue and profit when the company charges different prices in each market and maximizes its total profit.
Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.