Multichoice company broadcasts to subscribers in Lusaka and Solwezi. The demand for each of these two groups are Qsz= 50 - (1/3) Ps and QUSK= 80 - (2/3) Pusk, where Q is in thousands of subscriptions per year and P is the subscription price per year. The cost of providing Q units.of service is given by C (Q) = 1000 + 30Q, where Q = Qsz + QusK. Assuming Multichoice is a Monopoly and can engage in third-price discrimination, then 1. What is the profit-maximizing price and quantity in Solwezi Market? 2. What is the profit-maximizing price and quantity in Lusaka Market? 3. Suppose the Monopoly can only charge a single. What price should it charge and what is the total quantity sold?

Multichoice company broadcasts to subscribers in Lusaka and Solwezi. The demand for each of these two groups are Qsz= 50 - (1/3) Ps and QUSK= 80 - (2/3) Pusk, where Q is in thousands of subscriptions per year and P is the subscription price per year. The cost of providing Q units.of service is given by C (Q) = 1000 + 30Q, where Q = Qsz + QusK. Assuming Multichoice is a Monopoly and can engage in third-price discrimination, then 1. What is the profit-maximizing price and quantity in Solwezi Market? 2. What is the profit-maximizing price and quantity in Lusaka Market? 3. Suppose the Monopoly can only charge a single. What price should it charge and what is the total quantity sold?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter14A: The Practice Of Revenue Management

Section: Chapter Questions

Problem 3E

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