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# Answer to Question #13795 in Microeconomics for jamal

Question #13795
Consolidated Salt Company sells table salt to both retail grocery chains and commercial users
(e.g., bakeries, snack food makers, etc.). The demand function for each of these markets is:
Retail grocery chains: P1 = 180 - 8Q1
Commercial users: P2 = 100 - 4Q2
where P1 and P2 are the prices charged and Q1 and Q2 are the quantities sold in the respective
markets. Consolidated&#039;s total cost function (which includes a &quot;normal&quot; return to the owners) for
salt is:
TC = 50 + 20(Q1 + Q2)
ASSIGNMENT &ndash; BMME5103
2
(a) Determine Consolidated&#039;s total profit function.

(b) Assuming that Consolidated is effectively able to charge different prices in the two
markets, what are the profit-maximizing price and output levels for the product in the two
markets? What is Consolidated&#039;s total profit under this condition?

(c) Assuming that Consolidated is required to charge the same price in each market, what are
the profit-maximizing price and output levels? What is Consolidated&#039;s total profit under this
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