i want an answer please The Financial Herald, a weekly newspaper specializing in

Question

i want an answer please

The Financial Herald, a weekly newspaper specializing in corporate financial news, is purchased by both business people and students. revenue functions to be: A marketing research firm has estimated the two linear marginal MR, 120-0.040 MR.-40-0.01Q, where M Rg is the estimated marginal revenue for the business readers, and MRs is the estimated arginal revenue for the student readers. The production department at The Herald estimates a linear marginal cost function for newspaper production, which is MC 16+0.0020 a. The Herald should print a total of b. copies each week. The Herald should sell copies to students. copies to business readers and sell and charge students a c. The Herald should charge business readers a price of S price of $

Explanation / Answer

a)

Equilibrium in Business MR=MC

120 - 0.04Q = 16+0.002Q

0.042Q = 104

Q = 104/ 0.042

=2476.

Equilibrium for Students:

40 - 0.01Q = 16+ 0.002Q

Q = 24/0.012

= 2000

Total print of copies by Herald = 4,476 (2000+2476)

b) Heral should sell 2476 copies to business people and 2000 copies to students.

c)

Price to be charged from Business class

MR= 120 - 0.04Q

On integrating :

TR = 120Q - 0.02Q^2

dividing by Q

P = 120 - 0.02Q

subtituting value of Q

= 120 - 0.02 (2476)

= 70.48

Price to be charged from students:

MR = 40 - 0.01Q

TR = 40Q - 0.01Q^2

P = 40 - 0.01Q

= 40 - 0.01(2,000)

=40 -20

= 20

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