3-) Suppose that a fürm sells its product in two seperable markets. The demand equations areQ1 = 100 – P,%3DQ2 = 50 – 0.25P2%3DThe firm's total cost equation isTC= 150 + 5Q + 0.5Q2a) If the firm engages in third- degree price discrimination, how much should it sell, andwhat price should it gharge, in each market?b) What is the firm's total profit?

Given:- (Demand equations)- Q1=100-P1 Q2=50-0.25P2 Total cost…

3-) Suppose that a fürm sells its product in two seperable markets. The demand equations are Q1 = 100 – P Q2 = 50 – 0.25P, The firm's total cost equation is TC = 150 + 5Q + 0.5Q? a) If the firm engages in third- degree price discrimination, how much should it sell. and what price should it gharge, in gach market? b) What is the firm's total profit?

3-) Suppose that a fürm sells its product in two seperable markets. The demand equations are Q1 = 100 – P Q2 = 50 – 0.25P, The firm's total cost equation is TC = 150 + 5Q + 0.5Q? a) If the firm engages in third- degree price discrimination, how much should it sell. and what price should it gharge, in gach market? b) What is the firm's total profit?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter18: Asymmetric Information

Section: Chapter Questions

Problem 18.3P

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