Maurice Tutor

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About Maurice Tutor

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Expertise:
Algebra,Applied Sciences See all
Algebra,Applied Sciences,Biology,Calculus,Chemistry,Economics,English,Essay writing,Geography,Geology,Health & Medical,Physics,Science Hide all
Teaching Since: May 2017
Last Sign in: 304 Weeks Ago, 2 Days Ago
Questions Answered: 66690
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Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

Experience

  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 22 Nov 2017 My Price 7.00

Sal’s satellite company

8.     Sal’s satellite company broadcasts TV to subscribers in Los Angeles and New York. The demand functions for each of these two groups are

 

QNY  = 60 - 0.25PNY

QLA  = 100 - 0.50PLA

 

where Q is in thousands of subscriptions per year and P is the subscription price per year. The cost of provid- ing Q units of service is given by

 

C  = 1000  + 40Q

 

where Q = QNY  + QLA.

a.   What are the profit-maximizing prices and quanti-

ties for the New York and Los Angeles markets?

b.    As a consequence of a new satellite that the Pentagon recently deployed, people in Los Angeles receive Sal’s New York broadcasts and people in New York receive Sal’s Los Angeles broadcasts. As a result, anyone in New York or Los Angeles can receive Sal’s broadcasts by subscribing in either city. Thus Sal can charge only a single price. What price should he charge, and what quantities will he sell in New York and Los Angeles?

c.    In which of the above situations, (a) or (b), is Sal better off? In terms of consumer surplus, which sit- uation do people in New York prefer and which do people in Los Angeles prefer? Why?

Answers

Maurice Tutor
(5)
Status NEW Posted 22 Nov 2017 03:11 PM My Price 7.00

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