Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets, Bangladesh and Sri Lanka. Demand for Bicycles in these two markets is given by the following Functions: Bangladesh Q1 = 12 – P1 Sri Lanka Q2 = 8 – P2 Where Q1 and Q2 are respective quantities sold (in thousands) andP1 and P2 are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is C = 5 + 2 (Q1+ Q2) Determine the company’s total profit function. Also, (i) What are the profit maximizing levels of price and output for the two markets? (ii) Calculate the marginal revenues in each market.

Name: Road Runner Co is a Pakistani manufacturer making Bicycles. It exports
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Description: Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets, Bangladesh and Sri Lanka. Demand for Bicycles in these two markets is given by the following Functions: Bangladesh Q1 = 12 – P1

Demand for two markets is, Bangladesh: Q1=12-P1Sri Lanka: Q2 = 8-P2 Total cost function is,…

Answered: Road Runner Co is a Pakistani…

Intermediate Algebra

19th Edition

ISBN:9780998625720

Author:Lynn Marecek

Publisher:Lynn Marecek

Chapter4: Systems Of Linear Equations

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Road Runner Co is a Pakistani manufacturer making Bicycles. It exports to two markets, Bangladesh and Sri Lanka. Demand for Bicycles in these two markets is given by the following Functions:

Bangladesh Q₁ = 12 – P₁

Sri Lanka Q₂ = 8 – P₂

Where Q₁ and Q₂ are respective quantities sold (in thousands) andP₁ and P₂ are the respective prices (in Pak. Rupees per unit) in the two markets. Total cost function is

C = 5 + 2 (Q₁+ Q₂)

Determine the company’s total profit function. Also,

(i) What are the profit maximizing levels of price and output for the two markets?

(ii) Calculate the marginal revenues in each market.

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