Your company sells its product online and in stores. Your marginal cost $30 is the same in both markets. The demand and marginal revenue curves in the two markets are different however. Qonline = 1,000 – 2 Ponline MRonline = 500 – Qonline Qstores = 200 – Pstores MRstores = 200 – 2 Qstores What is the profit maximizing price level in each market?

Your company sells its product online and in stores. Your marginal cost $30 is the same in both markets. The demand and marginal revenue curves in the two markets are different however.

Qonline = 1,000 – 2 Ponline

MRonline = 500 – Qonline

Qstores = 200 – Pstores

MRstores = 200 – 2 Qstores

What is the profit maximizing price level in each market?

Online

Stores

At those prices, what output is sold in each market?

Which market has a more elastic demand?
Your company sells its product online and in stores. Your marginal cost $30 is the same in both markets. The demand and marginal revenue curves in the two markets are different however.
Qonline = 1,000 – 2 Ponline
MRonline = 500 – Qonline
Qstores = 200 – Pstores
MRstores = 200 – 2 Qstores
What is the profit maximizing price level in each market?
Online
Stores
At those prices, what output is sold in each market?
Which market has a more elastic demand?

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