The market demand function for birthday cards in Greenwich Village is: P = 100 − 10Q. The total cost function for producing birthday cards is: C= 60 + 20q. Suppose that a firm can perfectly price discriminate (i.e. conduct first-degree price discrimination). How much will its profits be? Please write answer as "Profits will be ____"

The market demand function for birthday cards in Greenwich Village is: P = 100 − 10Q. The total cost function for producing birthday cards is: C= 60 + 20q. Suppose that a firm can perfectly price discriminate (i.e. conduct first-degree price discrimination). How much will its profits be? Please write answer as "Profits will be ____"

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Monopoly

Section: Chapter Questions

Problem 3SQP

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The market demand function for birthday cards in Greenwich Village is: P = 100 − 10Q. The total cost function for producing birthday cards is: C= 60 + 20q. Suppose that a firm can perfectly price discriminate (i.e. conduct first-degree price discrimination). How much will its profits be? - How would I start this question?
The market demand function for birthday cards in Greenwich Village is: ? = 100 − 10?. The total cost function for producing birthday cards is: ? = 60 + 20?. Suppose that a firm can perfectly price discriminate (i.e. conduct first-degree price discrimination). How much will its profits be?
Widget Sales Jesaki Inc. is trying to enter the widget market. The research department established the following price-demand, cost, and revenue functions: p(x)=60-1.20x C(a) = 210 + 12x |R(x) = xp(x) = x(60 - 1.20x) Revenue function where x is in thousands of widgets and C(x) and R(x) are in thousands of dollars. The price p(z) is the price in dollars of one widget when the demand is a thousand widgets. All three functions have domain 1 ≤ ≤ 50. Use this information to answer questions 1-10 below. Price-demand function Cost function
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Suppose you are the marketing manager for Fruit of the Loom. An individual's inverse demand for Fruit of the Loom women's underwear is estimated to be P = 25 − 3Q (in cents). If the cost to Fruit of the Loom to produce an item of women's underwear is C(Q) = 1 + 4Q (in cents), compute the price Fruit of the Loom should charge for a package of women's underwear. $108.50 $1.09 $1.02 $136.50
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Gliberace's Fashion Accessories of Las Vegas produces gem-stone encrusted formal wear for sale in Los Angeles and San Francisco subject to total cost TC = 100 + 5(QLA + QSF). Demand for Gliberace's stones in the two cities is given by QLA = 70 - 2PLA and QSF = 55 - PSF. If Gliberace price discriminates between the two cities, what will its maximum profits be? $975 $750 $825 $1,175 $1,075
Suppose that BMW can produce any quantity of cars at a constant marginal cost equal to $50 and a fixed cost of $22,500. You are asked to advise the CEO as to what prices and quantities BMW should set for sales in Europe and in the United States to maximize its profits. The demand for BMWS in each market is given by: QE = 8,000 - 80PE and Qu = 4,000 - 20 Pu, where the subscript E denotes Europe, the subscript U denotes the United States. Assume that BMW can restrict U.S. sales to authorized BMW dealers only. Support your answers %3D graphically as well. a. If, by an international agreement between Europe and United States, BMW were forced to charge the same price in each market, what would be the quantity sold in each market, the equilibrium price, and the company's profit? b. Suppose now that Europe and United States signed a new trade package under which BMW now can charge different prices across the two markets. What quantity of BMWS should the firm sell in each market, and what…