Suppose that a MiniChirp is a monopoly microchip manufacturer who faces the following de- mand curves...
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Suppose that a MiniChirp is a monopoly microchip manufacturer who faces the following de- mand curves for its product in two different countries: Australia (A) and New Zealand (NZ). = Australia: QA 400 - PA, New Zealand: QNZ 150- = - 1 PNZ where p; and Qi denote the price and quantity sold in country i respectively. MiniChirp's cost function is given by c(Q) = 0.25(QA+QNZ). Assume that resale between countries is not possible and that MiniChirp is a profit maximiser. (a) (3 points) Find the prices, PA and pvz, which maximise MiniChirp's profits, assuming no capacity constraints. (b) (1 point) Suppose that MiniChirp faces a capacity constraint of 250 units: (QA+QNZ 250). What price that MiniChirp will charge in each country? (c) (3 points) Suppose that MiniChirp faces a capacity constraint of 125 units: (QAQNZ 125). What price that MiniChirp will charge in each country? (d) (3 points) Suppose that MiniChirp faces a capacity constraint of 20 units: (QAQNZ 20). What is the lowest price that MiniChirp will charge in each country? Suppose that a MiniChirp is a monopoly microchip manufacturer who faces the following de- mand curves for its product in two different countries: Australia (A) and New Zealand (NZ). = Australia: QA 400 - PA, New Zealand: QNZ 150- = - 1 PNZ where p; and Qi denote the price and quantity sold in country i respectively. MiniChirp's cost function is given by c(Q) = 0.25(QA+QNZ). Assume that resale between countries is not possible and that MiniChirp is a profit maximiser. (a) (3 points) Find the prices, PA and pvz, which maximise MiniChirp's profits, assuming no capacity constraints. (b) (1 point) Suppose that MiniChirp faces a capacity constraint of 250 units: (QA+QNZ 250). What price that MiniChirp will charge in each country? (c) (3 points) Suppose that MiniChirp faces a capacity constraint of 125 units: (QAQNZ 125). What price that MiniChirp will charge in each country? (d) (3 points) Suppose that MiniChirp faces a capacity constraint of 20 units: (QAQNZ 20). What is the lowest price that MiniChirp will charge in each country?
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