Question

Your company manufactures two models of speakers, the Ultra Mini and the Big Stack. Demand for...

Your company manufactures two models of speakers, the Ultra Mini and the Big Stack. Demand for each depends partly on the price of the other. If one is expensive, then more people will buy the other. If p1 is the price of the Ultra Mini, and p2 is the price of the Big Stack, demand for the Ultra Mini is given by q1(p1, p2) = 100,000 − 300p1 + 10p2 where q1 represents the number of Ultra Minis that will be sold in a year. The demand for the Big Stack is given by q2(p1, p2) = 150,000 + 10p1 − 300p2. Find the prices for the Ultra Mini and the Big Stack that will maximize your total revenue. (Round your answers to two decimal places.)

p1 = $

p2 = $

Math   Advanced-Math   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Your company manufactures two models of speakers, the Ultra Mini and the Big Stack. Demand for...
Your company manufactures two models of speakers, the Ultra Mini and the Big Stack. Demand for each depends partly on the price of the other. If one is expensive, then more people will buy the other. If p1 is the price of the Ultra Mini, and p2 is the price of the Big Stack, demand for the Ultra Mini is given by q1(p1, p2) = 100,000 − 800p1 + 10p2 where q1 represents the number of Ultra Minis that will...
Your company manufactures two models of speakers, the Ultra Mini and the Big Stack. Demand for...
Your company manufactures two models of speakers, the Ultra Mini and the Big Stack. Demand for each depends partly on the price of the other. If one is expensive, then more people will buy the other. If p1 is the price of the Ultra Mini, and p2 is the price of the Big Stack, demand for the Ultra Mini is given by q1(p1, p2) = 100,000 − 100p1 + 10p2 where q1 represents the number of Ultra Minis that will...
Two firms compete by choosing price. Their demand functions are Q1 = 20 - P1 +...
Two firms compete by choosing price. Their demand functions are Q1 = 20 - P1 + P2 and Q2 = 20 +P1 -P2 where P1 and P2 are the prices charged by each firm, respectively, and Q1 and Q2 are the resulting demands. Note that the demand for each good depends only on the difference in prices; if the two firms colluded and set the same price, they could make that price as high as they wanted, and earn infinite...
Suppose that a monopolist can separate the demand into two easily identified groups (such as students...
Suppose that a monopolist can separate the demand into two easily identified groups (such as students vs. non students). The non-students’ demand (Group 1) is given by P1 = 150 − Q1, where P1 is the price and Q1 is the quantity demanded by this group. The students’ demand (Group 2) is given by P2 = 75 − 0.5Q2. The monopolist’s cost is as follows. There is no fixed cost, and the marginal cost is a constant at $5. (a)...
1. Consider a monopolist with unit cost c = 20, facing two separate markets with demand...
1. Consider a monopolist with unit cost c = 20, facing two separate markets with demand functions D1(p1) = 100 - p1 and D2(p2) = 60 - 2p2. (a) Find the optimal prices (p1*, p2*) and quantities (q1*, q2*) with price discrimination. (b) Find the optimal price p* and quantity q* without price discrimination. Compare them to the answers in (a) (c) Compare total welfare with and without price discrimination. Explain your answer.
Ellix Company manufactures two models of ultra-high fidelity speakers—the X200 model and the X99 model. Data...
Ellix Company manufactures two models of ultra-high fidelity speakers—the X200 model and the X99 model. Data regarding the two products follow: Product Direct Labor-Hours Annual Production Total Direct Labor-Hours X200 0.4 DLHs per unit 19,000 units 7,600 DLHs X99 0.6 DLHs per unit 48,000 units 28,800 DLHs 36,400 DLHs Additional information about the company follows: a. Model X200 requires $44 in direct materials per unit, and model X99 requires $20. b. The direct labor workers are paid $40 per hour....
12. [15 pts] A company has monopoly rights to sell the popular video “Boyfights”. Suppose there...
12. [15 pts] A company has monopoly rights to sell the popular video “Boyfights”. Suppose there are two groups of buyers of Boyfights. Demand for the respective groups is given by the following equations: Group I: P1 = 10 – Q1 Group II: P2 = 8 – 2Q2 Where Q1 and Q2 are the number of Boyfights movies sold to each group. The total cost function for making each copy of the movie is TC = Q, where Q =...
Consider two firms are performing Cournot price competition in two differentiated goods markets. Firm 1 produces...
Consider two firms are performing Cournot price competition in two differentiated goods markets. Firm 1 produces goods 1, and firm 2 produces goods 2, and two market demand functions are given by q1(p1,p2) = 12 - 2p1 +p2 and q2(p1,p2) = 15q22 + 45Q . Furthermore, assume that the two firms have the same cost function such that fixed cost is $20 and variable cost is zero. (10pts) Calculate the equilibrium prices, quantities and profits for both firms. (10pts) Assume...
2. Suppose that there is a firm that sells the same good in two different markets...
2. Suppose that there is a firm that sells the same good in two different markets and that it is able to prevent resale from the lower priced market to the higher priced market. The direct demand functions for the two markets are given by the following two equations: Q1 = 8- P1 Q2= 12- P2 Also, the firm produces this good in one plant, so the Total Cost function is given by the following equation: TC = 5 +...
Bass Audio Company manufactures two models of speakers, U500 and S1000. Based on the following production...
Bass Audio Company manufactures two models of speakers, U500 and S1000. Based on the following production and sales data for June. U500 S1000 Estimated inventory (units), June 1 12,500      5,000 Desired inventory (units), June 30 15,000 7,500 Expected sales volume (units): Northeast Region 70,000 50,000 Southwest Region 80,000 62,500 Unit sales price $45 $80 a. Prepare a sales budget. Enter all amounts as positive numbers. BASS AUDIO COMPANY Sales Budget For the Month Ending June 30 Product and Area...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT