Simone is the only provider of pumpkins for three cities. Because she has her own large garden, the marginal cost to produce an
1 answer:
Answer: hi your question has some missing data attached below is the missing table
answer : $9
Explanation:
If Simone practices price discriminations across cities i.e. charging different prices across city instead of charging a single price
<u>To determine the additional profit we will apply the formula below</u>
Profit made from charging different prices - profit made from charging a single price
= ( ( $11 * 4) + ( $9 * 4 ) + ( $10 * 5) ) - ( $11 * 11 units )
= $130 - $121
= $9
Note : For a single pricing system Simone will sell only 11 units at a unit price of $11
while for different pricing system Simone will sell 4 units in city A at$11 , 4 units in City B at $9 , 5 units in city C at $10
You might be interested in
Answer:
if n=1 (monopoly) we have
if n goes to infinity (approaching competitive level), we get the competition quantity that would be
Explanation:
In the case of a homogeneous-good Cournot model we have that firm i will solve the following profit maximizing problem
from the FPC we have that
since all firms are homogeneous this means that
then
the industry output is then
if n=1 (monopoly) we have
if n goes to infinity (approaching competitive level), we get the competition quantity that would be