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September 3, 2015

Homework Help: economics

Posted by v on Friday, January 8, 2010 at 5:53am.

a monopolist, has a total cost curve given by TC = 5Q + 15. He sets two prices for his product, a regular price, PH, and a discount price, PD. Everyone is eligible to purchase the product at PH. To be eligible to buy at PD, it is necessary to present a copy of the latest Vietnam Electrics newspaper ad to the salesclerk. Suppose the only buyers who present the ad are those who would not have been willing to buy the product at PH.

demand curve is given by P = 20 – 5Q, what are the profit-maximizing values of PH and PD?

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