Apple and Samsung produce a differentiated product-phones for business users. Mentioned firms dominate the industry and...

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Apple and Samsung produce a differentiated product-phones for business users. Mentioned firms dominate the industry and compete with prices. Their production and cost functions are given by: Dell: Q-500-Pr+P₂. TC-60Q1 HP: Q-400+P₁-P. TC-800 a) Calculate the prices of phones produced by these two companies b) Calculate quantities of phones these two companies sell c) Calculate profits of these two firms d) Briefly explain what would happen to firms' profits in case they start to sell homogeneous products and still compete with prices. Apple and Samsung produce a differentiated product-phones for business users. Mentioned firms dominate the industry and compete with prices. Their production and cost functions are given by: Dell: Q-500-Pr+P₂. TC-60Q1 HP: Q-400+P₁-P. TC-800 a) Calculate the prices of phones produced by these two companies b) Calculate quantities of phones these two companies sell c) Calculate profits of these two firms d) Briefly explain what would happen to firms' profits in case they start to sell homogeneous products and still compete with prices.

Answer rating: 100% (QA)

a The price of phones produced by Dell is P 500 P P 500 60Q1 The ... View the full answer