Hello! Just stuck on answering these questions. Explaining the answer would be greatly appreciated. Thank you.A) Suppose that MiniChirp faces a capacity constraint of 125 units: (QA + QNZ ≤ 125). What price that MiniChirp will charge in each country?B) Suppose that MiniChirp faces a capacity constraint of 20 units: (QA + QNZ ≤ 20). What is the lowest price that MiniChirp will charge in each country? Suppose that a MiniChirp is a monopoly microchip manufacturer who faces the following de-mand curves for its product in two different countries: Australia (A) and New Zealand (NZ).Australia: QA = 400 - PA,New Zealand: QNz = 150 ---PNZ;where p; and Q; denote the price and quantity sold in country i respectively.Mini Chirp's cost function is given byc(Q) = 0.25(QA+QNZ)².Assume that resale between countries is not possible and that MiniChirp is a profit maximiser.

MiniChirp is a monopoly microchip manufacturer that faces the following demand curves for its…

A) Suppose that MiniChirp faces a capacity constraint of 125 units: (QA + QNZ ≤ 125). What price that MiniChirp will charge in each country? B) Suppose that MiniChirp faces a capacity constraint of 20 units: (QA + QNZ ≤ 20). What is the lowest price that MiniChirp will charge in each country?

A) Suppose that MiniChirp faces a capacity constraint of 125 units: (QA + QNZ ≤ 125). What price that MiniChirp will charge in each country? B) Suppose that MiniChirp faces a capacity constraint of 20 units: (QA + QNZ ≤ 20). What is the lowest price that MiniChirp will charge in each country?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter16: Government Regulation

Section: Chapter Questions

Problem 6E

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Question

Hello! Just stuck on answering these questions. Explaining the answer would be greatly appreciated. Thank you.

A) Suppose that MiniChirp faces a capacity constraint of 125 units: (QA + QNZ ≤ 125). What price that MiniChirp will charge in each country?

B) Suppose that MiniChirp faces a capacity constraint of 20 units: (QA + QNZ ≤ 20). What is the lowest price that MiniChirp will charge in each country?

Suppose that a MiniChirp is a monopoly microchip manufacturer who faces the following de-
mand curves for its product in two different countries: Australia (A) and New Zealand (NZ).
Australia: QA = 400 - PA,
New Zealand: QNz = 150 ---PNZ;
where p; and Q; denote the price and quantity sold in country i respectively.
Mini Chirp's cost function is given by
c(Q) = 0.25(QA+QNZ)².
Assume that resale between countries is not possible and that MiniChirp is a profit maximiser.

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