Completed quickly and followed instructions given. Grammar, spelling, etc. was all good as well. Thank you so much! Will hire in the future.
The LED Toy Company has a hot new toy called Dabbdo that it sells in two markets. On the cost side the firm has fixed costs of $150,000 dollars monthly. In addition, its variable costs are MC = AVC = $25 per toy. Assume that the LED Toy Company can engage in third-degree price discrimination and its goal is to maximize its profits.
The monthly demand in Market 1 where P1 is price in dollars is:
P1 = 55 – Q1, where Q1 is the quantity in thousands of the toy sold in market 1 monthly.
The monthly demand in Market 2 where P2 is price in dollars is:
P2 = 35 – 0.5Q2 where Q2 is the quantity in thousands of the toy sold in market 2 monthly
(a) (4 pts.) How many toys will be bought and sold in each market monthly?
ANSWERS: In Market 1: ___________ thousand ; Market 2: ___________ thousand
(b) (3 pts.) What price will be charged in each market?
ANSWERS: Price in market 1: ________ ; Price in market 2: _________
(c) (3 pts.) And what LED’s monthly profits be?
ANSWER: ______________________
Show more
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more