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In: Economics

XYZ Co. has a central manufacturing facility, located in Mobile, Alabama. At this facility it makes...

XYZ Co. has a central manufacturing facility, located in Mobile, Alabama. At this facility it makes a product that it sells into two separate markets (West Coast and Mid-Atlantic).              

The company estimates the weekly demand functions for two markets to be as follows:              
              
West Coast:   Q = 4000 - 200P       Mid-Atlantic:   Q = 6000 -400P
              
The product's cost function is estimated as follows:              
              
   TC = 2000 + 10Q          
              
a. What is the company's weekly profit if the firm does not practice discrimination in               
pricing between the two markets.              
              
              
              
              
b. What is the company's weekly profit if the firm does practice discrimination in pricing              
between the two markets.              
              

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Rahul Sunny answered 1 year ago
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