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    Economics: Quantity and Demand

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    A firm manufactures a product that is sold on two different markets (A and B) that have the following demand functions:

    QA = 100 -0.50PA
    QB = 60 -0.50PB

    The firm has the following marginal cost function:

    MC = 20 + 0.80Q

    If the firm is engaging in price discrimination, what prices should be charged on each market and how many units should be sold on each market?

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    https://brainmass.com/economics/pricing-output-decisions/economics-quantity-demand-575985

    Solution Preview

    PRICE DISCRIMINATION

    A firm manufactures a product that is sold on two different markets (A and B) that have the following demand functions:
    QA = 100 - 0.50PA
    QB = 60 - 0.50PB
    The firm has the following marginal cost function:
    MC = 20 + 0.80Q

    If the firm is engaging in price discrimination, what prices should be charged on each market and how many units should be sold on each market?

    TUTORIAL

    Step 1: Determine the total ...

    Solution Summary

    The solution discusses the intricacies of demand and supply under economics. The solution will be helpful to economics and finance students. Equations are provided to aid in the understanding and calculations.

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