Youre the marketing manager of a firm that produces, Ask an Expert

Economics

You are the marketing manager of a firm that produces Titanium and sells this metal to two distinct kinds of customers: aircraft producers and golf club manufacturers. Demand for Titanium by these two market segments is quite different, as described by the respective price equations: PA = 10 - QA./600 and PG = 12 - QG./100, where annual quantities are in thousands of pounds and prices are in dollars. Your firm estimates the marginal cost of titanium production at $4 per pound.

a) For each segment, determine the firm's profit-maximizing price and output. Is the firm practicing price discrimination?

b) Because of Titanium shortages, the firm's total production capacity drops to only 1.5 million pounds per year. Determine the firm's optimal quantities and prices in this case.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9293003

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question an auto manufacturer gives franchised dealers

Question: An auto manufacturer gives franchised dealers exclusive service territories, and the law allows dealers to set prices as they wish. Why might you expect the dealer and manufacturer to disagree about the price t ...

Question assume the supply of plain white tee shirts is

Question: Assume the supply of plain white tee shirts is perfectly elastic, but demand has the usual downward sloping shape. Suppose the government imposes a tax per unit sold on plain white tee shirts. Compared to the m ...

Question until recently marie worked as an program manager

Question: Until recently Marie worked as an program manager, earning $45,000 annually. Then she opened a Peruvian restaurant downtown. At the end of the first year, her books showed total revenues of $200,000 and total c ...

Assignment pay discriminationwhy do women earn less than

Assignment: Pay Discrimination Why do women earn less than men? In this assignment you will look at the data on women's and men's pay, and explore reasons for the pay differential. Respond to the 3 key questions below. W ...

Questionnbsp principles of macroeconomicspart b short

Question: Principles of Macroeconomics PART B: SHORT ANSWER QUESTIONS. 1. At a price of $5 per pound, salmon is quite attractive to buyers but not very profitable to sellers. The quantity demanded is 750 pounds, represe ...

Question - consider the consumer choice example where

Question - Consider the consumer choice example, where consumption and leisure are perfect complements. Assume that the consumer always desires a consumption bundle where the quantities of consumption and leisure are equ ...

Problem now consider question if you are a manufacturer of

Problem: Now consider question if you are a manufacturer of auto parts. How would your answer differ? How would it differ for manufacturing and retail firms generally? Question: Suppose you work for a large retail chain ...

Question 1on what basis did the court conclude that

Question: 1. On what basis did the court conclude that Microsoft was a monopoly (see "Market Share")? 2. What was Microsoft's market share of Intel-compatible PC operating system? Of all operating system, including those ...

Question markets are where people exchange information

Question: Markets are where people exchange information about potential transactions. If so, can advertising create economic value? Explain. Identify some other institutions whose effects on lowering information costs ar ...

Question - the following table shows a workers wages annual

Question - The following table shows a worker's wages (annual salary), from 2007 to 2010: Years Annual Salary CPI (base 100=2005) 2007 7524 109 2008 8208 119 2009 8892 125 2010 9234 130 a) Calculate the time-series data ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert