Skip to Main Content
Microeconomics II
book

Microeconomics II

by D.N. Dwivedi
August 2011
Intermediate to advanced content levelIntermediate to advanced
368 pages
14h 51m
English
Pearson India
Content preview from Microeconomics II
76 Chapter 3
Price Determination. e prot maximizing prices can now be obtained by substituting Q
a
and Q
b
with their estimated values (4 and 3, respectively) in price functions (A.3) and (A.4), respectively. e
price for market A can be obtained as
P Q
a a
=
=
=
32 2
32 2(4)
24
and price for market B as
P Q
b b
=
=
=
22
22 3
19
us, in market A, price = Rs 24 and in market B, price = Rs 19.
Prot Determination. Now that prices and sales for the two markets arc known, total prot can be
obtained by substituting numerical values for Q
a
and Q
b
in prot function (A.10) reproduced below.
π
= + 3 2 3 2 2 1
2 2
0 0 0Q Q Q Q Q Q
a b a b a b
By substituting ...
Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

Macroeconomics, Third Edition, 3rd Edition

Macroeconomics, Third Edition, 3rd Edition

Professor David G. Tuerck
Economics DeMYSTiFieD

Economics DeMYSTiFieD

Melanie Fox, Eric Dodge

Publisher Resources

ISBN: 9788131797655