Answered You can hire a professional tutor to get the answer.

QUESTION

Firm C has identified two distinct market segments. The demand curves for segments are given by:

  1. Firm C has identified two distinct market segments. The demand curves for segments are given by:

P_A (Q^A) = 3 - 1/200 Q^A

P_B (Q^B) = 2 -1/200 Q^B

What is the optimal pricing policy for this firm assuming that marginal cost of production is negligible (MC = 0 )? In other words, what are the optimal prices in each market segment?

Hint: MR_A (Q^A) = 3 -1/100 Q^A

MR_B (Q^B) = 2- 1/100 Q^B

MON TUE . WED THU FRI . SAT . SUNa dd curve :a. demand curve A PA = 3 - (1/ 200) Qdemand curve B Pp = 2 - (1/200) QAlso given that , me = (MBA = 3 - (1/ 1003 QAMRB = 2 - (1/ 100 ) 68Optimal...
Show more
LEARN MORE EFFECTIVELY AND GET BETTER GRADES!
Ask a Question