Question: I need helping answering the questions below based on this information and graph. D1 = 310 - 0.2Q D2 = 450 - 0.2Q MRT =
I need helping answering the questions below based on this information and graph.
D1 = 310 - 0.2Q
D2 = 450 - 0.2Q
MRT = 380 - 0.2Q
DT = 380 - 0.1Q
MC = 0.0005Q^2 - 0.55Q + 290
a. Compare the demand conditions in each market; i.e. how do the two markets differ in their demand for the firm's product?
b. How much total output should the firm produce (for both markets combined)? How should that output be allocated between markets 1 and 2?
c. What price should the firm charge in each market?
| Q | D1 | MR1 | D2 | MR2 | MRT | DT | MC |
| 0 | 310 | 310 | 450 | 450 | 290 | ||
| 100 | 290 | 270 | 430 | 410 | 240 | ||
| 200 | 270 | 230 | 410 | 370 | 200 | ||
| 300 | 250 | 190 | 390 | 330 | 170 | ||
| 400 | 230 | 150 | 370 | 290 | 300 | 150 | |
| 500 | 210 | 110 | 350 | 250 | 280 | 140 | |
| 600 | 190 | 70 | 330 | 210 | 260 | 140 | |
| 700 | 170 | 30 | 310 | 170 | 240 | 310 | 150 |
| 800 | 150 | 290 | 130 | 220 | 300 | 170 | |
| 900 | 130 | 270 | 90 | 200 | 290 | 200 | |
| 1000 | 110 | 250 | 50 | 180 | 280 | 240 | |
| 1100 | 90 | 230 | 10 | 160 | 270 | 290 | |
| 1200 | 70 | 210 | 140 | 260 | 350 | ||
| 1300 | 50 | 190 | 120 | 250 | 420 | ||
| 1400 | 30 | 170 | 100 | 240 | 500 |

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