Crusty cakes sells donuts in eastown and westown its total, Ask an Expert

Economics

Crusty Cakes sells donuts in Eastown and Westown. Its total costs are given by TC = 10(Qe+Qw). The demand in each neighbourhood is given by Qe = 100 - 2Pe and Qw = 100 - Pw. If Crusty price discriminates between the two neighbourhoods, how much are its maximized profits?

a. $850

b. $1200

c. $2475

d. $2825

e. $3250

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91406258

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