Hey everyone, was just wondering if anyone is able to help me out with the following question.
A firm is allowed to charge different prices for its domestic and international customers. If P1 and Q1 denote the price and demand for the domestic market then the demand equation is P1+Q1=500
If P2 and Q2 denote the price and demand for the international market then the demand equation is 2(P2)+3(Q2)=720
Total cost function is: TC = 50,000+20(Q1+Q2)
Determine the firm's pricing policy that maximises profit with price discrimination and calculate the value of maximum profit.
Any help would be greatly appreciated, thanks alot.