A company sells its product both in Australia and New Zealand, the company's total cost is TC = 60+3(x+y). In australia the price at which x units can be sold is p=10-0.1x . In New Zealand, the price at which y units can be sold is q = 20-0.2y. ( All values in NZ dollars)
Im having issues understanding what to do with this question.
b) How should the sales be allocated to the two countries to maximise profits?
What prices should be charge in the two countries at the allocation found in b?
I understand how to maximise profits buts i don't understand how i am to know how to allocate the sales?
Can anyone help?