Seafood Salt Company wishes to third degree price discriminate between retail grocers (group A) and commercial users such as bakeries (Group B). The firm’s total cost schedule is TC = $5*QA + $20*QB. Demands for retail grocers and commercial users are, respectively, QA = 4,000*PA-3.0 and QB = 100,000*PB-2. The profit-maximizing prices to charge Groups A and B are

Seafood Salt Company wishes to third degree price discriminate between retail grocers (group A) and commercial users such as bakeries (Group B). The firm’s total cost schedule is TC = $5QA + $20QB. Demands for retail grocers and commercial users are, respectively, QA = 4,000PA-3.0 and QB = 100,000PB-2. The profit-maximizing prices to charge Groups A and B are

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Monopoly

Section: Chapter Questions

Problem 17SQ

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