: A firm sells its product in two… QuestionAsked Feb 17, XXXXXXXXXXviews A firm sells its product in two different markets. The inverse demand in market A is PA = 72 - 5QA and in market B, it is PB =...

: A firm sells its product in two…

QuestionAsked Feb 17, 2019104 views

A firm sells its product in two different markets. The inverse demand in market A is PA = 72 - 5QA and in market B, it is PB = 60 - 3QB. It has fixed costs of 72. Each unit it produces costs 12, i.e., marginal cost equals 12. To maximize profits, what quantities of output will be sold in each market and what will total profits be?