A firm has the exclusive contract to produce hats with the local university's logo. Current weekly...
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A firm has the exclusive contract to produce hats with the local university's logo. Current weekly demand is: Q=350-5P. Its weekly cost function is: TC = 3500 + 4Q +.02Q². Assume this firm finds a way to apply perfect first degree price discrimination. a. Now what is this firm's profit-maximizing weekly quantity? b. What is the firm's weekly profit? If instead the firm decides to use two-part pricing, assuming all customers have identical demands, find the profit-maximizing c. entry fee d. use fee A firm has the exclusive contract to produce hats with the local university's logo. Current weekly demand is: Q=350-5P. Its weekly cost function is: TC = 3500 + 4Q +.02Q². Assume this firm finds a way to apply perfect first degree price discrimination. a. Now what is this firm's profit-maximizing weekly quantity? b. What is the firm's weekly profit? If instead the firm decides to use two-part pricing, assuming all customers have identical demands, find the profit-maximizing c. entry fee d. use fee
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a Now what is this firm s profit max im izing weekly quantity ANS WER Q 350 D ETA IL ED WORK ING The firm s profit can be expressed as follows TR TC where TR is the total revenue and TC is the total c... View the full answer
Related Book For
Fundamental Accounting Principles
ISBN: 978-0078110870
20th Edition
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
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