ECON 101 Quiz: ECON 101 UW Madison Quiz4Summer2015
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Demand for type i buyers: p = 20 (1/2)q. Demand for type ii buyers: p = 10 (1/8)q. Suppose there is a single producer of this good and the producer"s mc is given by the equation: Assume that this producer has no fixed costs: (2. 5 points) suppose that this producer can treat this market as two separate markets: the market for. Total revenue from type i buyers = ____________ Total cost from type i buyers = ___________ Profit from type i buyers = ___________: (2. 5 points) suppose that this producer can treat this market as two separate markets: the market for. Type i buyers and the market for type ii buyers. Total revenue from type ii buyers = ____________ Total cost from type ii buyers = ___________ Calculate the profit maximizing quantity if the producer combines these two types of buyers into one market.