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Demand and marginal revenue curves in the two markets

Problem: Your company sells its product online and in stores. Your marginal cost $30 is the same in both markets. The demand and marginal revenue curves in the two markets are different however.

Qonline = 1,000-2 Ponline
MRonline = 500-Qonline

Qstores = 200-Pstores
MRstores = 200-2 Qstores

Question 1: What is the profit maximizing price level in each market?

Online
Stores

Question 2: At those prices, what output is sold in each market?

Online
Stores

Question 3: Which market has a more elastic demand?

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Macroeconomics: Demand and marginal revenue curves in the two markets

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Macroeconomics: Demand and marginal revenue curves in the two markets

Reference No:- TGS01746503

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