Consider the manufacturer of golf balls in Problem 12.8. The firm faces the demand curve P =
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In problem 12.8
Fore! is a seller of golf balls that wants to increase its revenues by offering a quantity discount. For simplicity, assume that the firm sells to only one customer and that the demand for Fore!'s golf balls is P = 100 - Q. Its marginal cost is MC = 10. Suppose that Fore! sells the first block of Q1 golf balls at a price of P1 per unit.
Find the profit-maximizing quantity and price per unit for the second block if Q1 = 20 and P1 = 80.
Find the profit-maximizing quantity and price per unit for the second block if Q1 = 30 and P1 = 70.
Find the profit-maximizing quantity and price per unit for the second block if Q1 = 40 and P1 = 60.
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