3- Gliberace’s Fashion Accessories of Las Vegas produces
gem-stone encrusted formal wear for sale in Los Angeles and San
Francisco subject to total cost TC = 100 + 6(QLA + QSF). Demand for
Gliberace’s stones in the two cities is given by QLA = 70 – 2PLA
and QSF = 50 – PSF. If Gliberace cannot price discriminate between
the two cities, and so charges the same price in each, how much
profit will the firm make?
4- Professor writes a book. The demand for the book is P=20-Q.
The fixed cost to produce the book is $10. Professor wants to sell
the book as an ebook, downloadable from his website. Marginal cost
in this case would be zero and it costs him nothing to run his
website. He wants to give students the possibility of letting them
pay whatever amount they want for the ebook. Suppose all students
will pay their maximum willingness to pay. How much profit will the
professor will make?Type your question here