A monopolist sells product a and product b a unit of, Econometrics

+44 141 628 6080
[email protected]

A monopolist sells product a and product b a unit of

A monopolist sells Product A and Product B. A unit of Product A costs 5 dollars to procure while a unit for Product B costs 10 dollars to procure. Let PA be the selling price of Product A and PB be the selling price of Product B. And, let QA be the demand for Product A and QB be the demand for Product B. The two demands interact so that

QA=100 - 20PB - PA, and

QB=200 - 10PA - PB.

1) Write an expression for profit as a function of PA and PB?

This questions belongs in the Business / Economics section:

Profit (p) = Revenue (R) - Costs (C)

Revenue (R) = Price (P) x Quantity (Q)

Given that Cost of A = $5 and Cost of B = $10, let PA and PB represent prices, respectively.

Profit (p) = (PAQA + PBQB ) - (5QA + 10QB )

Looking at the entire left side of the equal sign, the first bracket is the revenue, and the 2nd is the cost.

2) What are the prices of PA and PB that maximize profits?

3) How much is sold of each product at these prices?

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Econometrics: A monopolist sells product a and product b a unit of

Reference No:- TGS0573347

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Econometrics

Q : Identify which of the following statements about the

Identify which of the following statements about the halogenation of alkane hydrocarbons are correct. a) Halogenation of alkanes follows a chain mechanism.

Q : Draw a graph of aggregate demand and aggregate supply to

Draw a graph of aggregate demand and aggregate supply to illustrate the current situation. Be sure to include the aggregate demand curve, the short run aggregate supply curve and the long-run aggregate supply curve

Q : Gallium-67 t12 7825 hours is used in the medical diagnosis

Gallium-67 (t1/2 = 78.25 hours) is used in the medical diagnosis of certain kinds of tumors. If you ingest a compound containing 0.015 mg of this isotope, what mass (in milligrams) remains in your body after 13 days? (Assume none is excreted.)

Q : Calculate the binding energy in kilojoules per mole of

Calculate the binding energy in kilojoules per mole of nucleons of P for the formation of 30P and 31P. The required masses (in g/mol) are 1^1H = 1.00783, 0^1n = 1.00867, 15^30P = 29.97832, and 15^31P = 30.97376.

Q : A monopolist sells product a and product b a unit of

Q : Consider a dry air parcel at -12 degrees celsius and 450mb

Consider a dry air parcel at -12 degrees celsius and 450mb that descends adiabatically down to the surface where p=1000mb, Calculate the potential temperature at the surface

Q : Consider a substance where the intermolecular forces hold

Consider a substance where the intermolecular forces hold the molecules in fixed rigid positions. What is the process called when enough heat has been added to the substance so that the molecules begin to flow

Q : Each month a gas station sells 4000 gallons of gasoline

Each month, a gas station sells 4,000 gallons of gasoline. Each time the parent company refills the station's tanks, it charges the station $50 plus 70¢, per gallon. The annual cost of holding a gallon of gasoline is 30¢.

Q : Consider a dry air parcel initially at the surface t25

Consider a dry air parcel initially at the surface (T=25 degrees celsius and p=980mb) that rises adiabatically to a final location at 900mb

1959688

Questions
Asked

3,689

Active Tutors

1437781

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Request for Solution File

Ask an Expert for Answer!!

Econometrics: A monopolist sells product a and product b a unit of

Reference No:- TGS0573347

Have a Question? (oR Write a Review)

Recent Questions Asked Econometrics

Q : Identify which of the following statements about the

Q : Draw a graph of aggregate demand and aggregate supply to

Q : Gallium-67 t12 7825 hours is used in the medical diagnosis

Q : Calculate the binding energy in kilojoules per mole of

Q : A monopolist sells product a and product b a unit of

Q : Consider a dry air parcel at -12 degrees celsius and 450mb

Q : Consider a substance where the intermolecular forces hold

Q : Each month a gas station sells 4000 gallons of gasoline

Q : Consider a dry air parcel initially at the surface t25

Investigate the cause of the recent werewolf attacks

Describe marxist theory and psychology of addiction

Explain framers decisions in creating the constitution

Federal bureaucracy has to put up with a lot of red tape

What power of recognition when it comes to office president

What right ordinance power give to the president

Analyze leadership of organization during particular event

Request for Solution File

Ask an Expert for Answer!!

Econometrics: A monopolist sells product a and product b a unit of

Reference No:- TGS0573347

Recent Questions Asked Econometrics

Q : Identify which of the following statements about the

Q : Draw a graph of aggregate demand and aggregate supply to

Q : Gallium-67 t12 7825 hours is used in the medical diagnosis

Q : Calculate the binding energy in kilojoules per mole of

Q : A monopolist sells product a and product b a unit of

Q : Consider a dry air parcel at -12 degrees celsius and 450mb

Q : Consider a substance where the intermolecular forces hold

Q : Each month a gas station sells 4000 gallons of gasoline

Q : Consider a dry air parcel initially at the surface t25

Asked Questions