SuperTutor

(15)

$15/per page/Negotiable

About SuperTutor

Levels Tought:
Elementary,Middle School,High School,College,University,PHD

Expertise:
Accounting,Business & Finance See all
Accounting,Business & Finance,Economics,Engineering,HR Management,Math Hide all
Teaching Since: Apr 2017
Last Sign in: 327 Weeks Ago, 5 Days Ago
Questions Answered: 12843
Tutorials Posted: 12834

Education

  • MBA, Ph.D in Management
    Harvard university
    Feb-1997 - Aug-2003

Experience

  • Professor
    Strayer University
    Jan-2007 - Present

Category > Economics Posted 05 Jun 2017 My Price 10.00

Part A.

Part A.
Assume that XYZ Company is a profit maximizer by selling QA and QB units of its product in
two different markets, A and B, respectively, under the following conditions:
Demand for Q in Market A: PA = 5 – QA
Own Price Elasticity in Market A: εA = -2
And
Demand for Q in Market B: PB = 6 – QB
Own Price Elasticity in Market B: εB = -2.5
Also, the total amounts of Q available for sale in both Markets A and B are limited as follows:
Production and sales limit for Q is: QA + QB = 8 1. Given the above set of information, if XYZ company charges the same price of $2 for Q
in both Markets A and B (i.e., PA = PB = 2), do you think XYZ is optimizing its sales
practice? Justify your answer. (5 points) 2. Given your findings above, what do you think XYZ should do in this situation? Should
XYZ sell a larger (or smaller) quantity in Market A than in Market B? (4 points) 3. Given the above set of information, determine the price to be charged and the quantity to
be sold in each of Markets A and B. (4 points per each cell, a total of 16 points)
Quantity Sold
Price Charged Market A
?
? Market B
?
? Part B.
If a profit-maximizing monopolistic firm has a total cost function of: TC = 10 + 2Q and has the
own price elasticity of -1.5, what should be the optimal price for this firm to charge in the
market? (5 points)

Attachments:

Answers

SuperTutor
(15)
Status NEW Posted 05 Jun 2017 07:06 AM My Price 10.00

-----------

Attachments

file 1496649199-Solutions file.docx preview (51 words )
S-----------olu-----------tio-----------ns -----------fil-----------e -----------Hel-----------lo -----------Sir-----------/Ma-----------dam----------- T-----------han-----------k y-----------ou -----------for----------- yo-----------ur -----------int-----------ere-----------st -----------and----------- bu-----------yin-----------g m-----------y p-----------ost-----------ed -----------sol-----------uti-----------on.----------- Pl-----------eas-----------e p-----------ing----------- me----------- on----------- ch-----------at -----------I a-----------m o-----------nli-----------ne -----------or -----------inb-----------ox -----------me -----------a m-----------ess-----------age----------- I -----------wil-----------l b-----------e q-----------uic-----------kly----------- on-----------lin-----------e a-----------nd -----------giv-----------e y-----------ou -----------exa-----------ct -----------fil-----------e a-----------nd -----------the----------- sa-----------me -----------fil-----------e i-----------s a-----------lso----------- se-----------nt -----------to -----------you-----------r e-----------mai-----------l t-----------hat----------- is----------- re-----------gis-----------ter-----------ed -----------onÂ----------- th-----------is -----------web-----------sit-----------e -----------Tha-----------nk -----------you----------- -----------
Not Rated(0)
Relevent Questions