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AnsQ9 - Econ 301 Intermediate Microeconomic Theory NAME...

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Unformatted text preview: Econ 301: Intermediate Microeconomic Theory NAME: Korinna K. Hansen Quiz 9 Suppose a railroad faces the demand curve for transporting coal Pc = 38 — Q0 and the demand curve for transporting grain Pg = 14 — 0.25Qg, where Qc and Qg are the amount of coal and grain transported and Pa and Pg their prices. The marginal cost for moving either commodity is MC = $1 0. If the railroad is a profit-maximizer, find the profit maximizing rates (prices) that will be charged and also the quantities for coal and grain that will be transported. Is this a type of price discrimination? Why or why not? SVCQ A? Mite FY?“ (5% {Titan in)” wt 7 5AM if: 4650 :7 f2: 38": :0 :) MRC': 38) \ 8:0 -7 Qc= 33;; mam => ng MRzMC 1? 38'2Qc1l0 C => PC: 58- '4 =2¢+ => [pg 24 Pg=lq —o.2§Qg => MR5=W-~§Q3 as“ =’ P511” > (623:0 ’7 War—"7‘ Pa :O:) agtlfl—‘S—g .2:‘ Mflé‘o ’) 623): 2? ...
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