Phillips Industries manufactures a certain product that can be sold directly to retail outlets or to the Superior Company for further processing and eventual sale as a completely different product. The demand function for each of these markets is
Retail Outlets: P = 60 - 2Q
Superior Company: P = 40 - Q
Where P and P are the prices charged and Q and Q are the quantities sold in the respective markets. Phillips's total cost function for the manufacturers of this product isWhat are Phillips's total profits if the firm is effectively able to charge different prices in the two markets?
TC= 10 + 8(Q +Q )