Answer to Question #67988 in Microeconomics for Cairna
Alpha’s wine is given by the equation,
QA = 200 − PA + PB.
In this equation, the price of Alpha’s wine is PA per bottle, and the price of Beta’s wine is
PB per bottle. Alpha Vineyard has a marginal cost of MC A = $20 per bottle, and a fixed
cost of FC A = $6000. The demand for Beta’s wine is given by the equation,
QB = 9000 − 100PB + 40PA.
Are the bottles of wine produced by Alpha Vineyard and Beta Winery, homogeneous
products or heterogeneous products? Your answer must reference the two firms’
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