Our class lecture covered Printers and Ink Cartridges which are Complements. We will now look at substitutes. GM produces Chevys (c) and Buicks (b). The cars are considered substitutes by consumers. Demands are Qc=100-.5Pc-.1Qb and Qb=40-.4Pb-.2Qc. The price functions are Pc=200-2Qc-.2Qb and Pb=100-2.5Qb-.5Qc. Total Revenue is TR=Pc*Qc+Pb*Qb. Total Cost is TC=2Qc+1Qb. Find the profit-maximizing price for Chevys, taking into consideration Chevys and Buicks are substitutes. The profit maximizing price of Chevys is ____.
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