A company produces a single product and sells it in two different markets. Compare the quantities and prices of sales when price differentiation is done and when it is not done.
Q₁ = 21-0.1P₁
Q₂ = 50-0.4P₂
TC = 2000 + 10Q
(Q = Q₁ + Q₂)
Can you answer with lagrange method?
Q₁ = 21-0.1P₁
Q₂ = 50-0.4P₂
TC = 2000 + 10Q
(Q = Q₁ + Q₂)
Can you answer with lagrange method?