Question

Sal's satellite company broadcasts TV to subscribers in Los Angeles and New York. The demand functions for each of these two groups​ are:

Qny=70 - 0.25Pny

Qla= 110 - 0.5Pla

where Q is in thousands of subscriptions per year and P is the subscription price per year. The cost of providing Q units of service is given by

C= 1000 + 40Q

Where Q= Qny+Qla

a)What are the​ profit-maximizing prices and quantities for the New York and Los Angeles​ markets? ​ (round all answers to two decimal​ places)

In New​ York, the equilibrium quantity is...........subscribers at an equilibrium price of........

While in Los​ Angeles, the equilibrium quantity is..........subscribers at an equilibrium price of..........

​

Answer 1