A profit maximizing firm produces a single product that it sells in two distinct markets 1 & 2. The demand and cost functions for the firm are given below. Q1 = 21- 0.10P Q2 = 50 - 0.40P TC = 2000 + 10Q where Q = Q1 + Q2 Find the equilibrium quantities transacted and the prices charged in each market.

A profit maximizing firm produces a single product that it sells in two distinct markets 1 & 2. The demand and cost functions for the firm are given below. Q1 = 21- 0.10P Q2 = 50 - 0.40P TC = 2000 + 10Q where Q = Q1 + Q2 Find the equilibrium quantities transacted and the prices charged in each market.

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter11: Price-searcher Markets With High Entry Barriers

Section: Chapter Questions

Problem 14CQ

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