00:01
Alright, so for a, if the firm must use uniform pricing, it must consider the combined demand of both markets.
00:08
This is going to be p is equal to 70 minus 0 .01q, where our q is equal to qh plus ql.
00:19
Our marginal cost is $4, and we are going to maximize the profit by setting mc equal to our marginal revenue, which is derived from our demand function.
00:32
Setting our mc equal to our mr is going to give 4 is equal to 70 minus 0 .02q, and solving this is going to give us that q is equal to 3300.
00:47
Now we can plug this in to get our p value, which is 37.
00:52
Then we can calculate the profit, which is going to be p minus mc divided by q minus our fixed cost.
01:02
So we are going to do 37 minus 4 times 3300 minus 20 ,000, and that is going to give us an answer of 89 ,100...