Economics
posted by Carol .
If a firm supplies separable markets with price elasticities h1 = 3 and h2 = 2, it should set prices P1 and P2 so that:
a.2/3P1 = 1/2P2
b.3P1 = 2P2
c.2P1 = 3P2
d.P1 = P2
e.2P1 = 2/3P2

For your professor's, you gotta use the table , ululasy found at the back of your textbook or chapter, in the appendix, etc. I don't recommend using the table because it only works under certain uniform situations. The table's answer will also not be the exact correct answer; and the error will be bigger in bigger problems. Cheers.

2/3P1 = 1/2P2
Respond to this Question
Similar Questions

sciencechem question
Hello I have another hybridization question. For example in BeF2 ... the electron configuration is 1s2, 2s2, 2p1. It gets hybridized to 1s2, 2s1, 2p2. I know that it will be a sp2 hybridization but I'm not exactly sure why. It's because … 
Managerial Economics/Math
This is an MBAlevel Managerial Economics course. I am working on a homework assignment and have a couple problems that I don't really know how to get started. Here is another: Assume that a drug manufacturer sells a major drug in … 
managerial economics
A firm offers two differentiated products, X and Y and faces two types of consumers, types A and B. There are equal numbers of each type of consumers ¡V so, for simplicity, assume there is just one of each type. The valuations of … 
managerial economics
A firm offers two differentiated products, X and Y and faces two types of consumers, types A and B. There are equal numbers of each type of consumers ¡V so, for simplicity, assume there is just one of each type. The valuations of … 
managerial economics
A firm offers two differentiated products, X and Y and faces two types of consumers, types A and B. There are equal numbers of each type of consumers ¡V so, for simplicity, assume there is just one of each type. The valuations of … 
Economics
CCM television station is considering selling promotional videos produced by Firm A or Firm B. Firm A will charge the station a set up fee of $1,200 plus $2 for each cassette, while firm B has no set up fee and will charge $4.00 for … 
Economics
If a firm supplies separable markets with price elasticities h1 and h2, it should set prices P1 and P2 so that: a.P1 /h1 = P2 /h2 b.P1/(1  1 /h1) = P2 / (1  1/h2) c.P1(1 + 1/h1) = P2 (1 + 1/h2) d.P1 = 1  1/h1 and P2 = 1  1/h2 e.P1h1 … 
Pre Calculus 12
Im on the chapter of permutations/combinations/fundamental counting principle need help with 2 questions 1. emma is arranging her books in piles on her desk. she has 5 math books, 3 english books, and 4 science books. how many ways … 
economics
Part III: Calculate the Following Questions by Using the Necessary Steps (4 pts each) 1) A monopolist is deciding how to allocate output between two markets that are separated geographically. Demands for the two markets are P1 = 15 … 
Managerial Economics
A monopoly can produce any level of output it wishes at a constant marginal (and average) cost of $5 per unit. Assume the monopoly sells its goods in two different markets separated by some distance. The demand curve in the first market …