0:00
Hello everyone.
00:01
So it is given that q1 is equals to 450 minus p1.
00:08
Q2 is equal to 200 minus 0 .5 p2.
00:15
Q3 is equals to 150 minus 0 .25 p3.
00:23
Q4 is equal to 80 minus 0 .4 p4.
00:30
Now cost function is given total cost is equals to 95 ,000 minus 100 q.
00:40
So now as an economic advisor determine the prices to be charged in the three markets and amount of output to be sold in each market so that the total profits can be maximized.
00:53
So for market 1, p is equals to 450, q is equals to 450.
01:07
For market to 200 divided by 0 .5 is equal to 0 .5 divided by 0 .5 so on solving we get p is equals to 400 q is equals to 400 then coming to market 3 so here 150 divided by 0 .25 p divided by 0 .25 p divided by 0 .25 so it will be p is equals to 600 and q is equals to 150 then talking about market 4 so it will be 80 divided by 0 .4 is equal to 0 .4 p divided by 0 .4 so we get p is equals to 200 and q is equals to 70 now next part say is that calculate the total profit to be made from the strategy of price discrimination and clearly explain this strategy.
02:41
So coming to part b.
02:44
So total profit for market a is 450 multiplied by 450 that gives 2 lakh 2 ,500...