{"id":40,"date":"2016-07-26T04:09:56","date_gmt":"2016-07-26T04:09:56","guid":{"rendered":"http:\/\/essayparlour.com\/paperhelp\/uncategorized\/good-year-tire-company-sells-identical-radical-tires-under-t\/"},"modified":"2016-07-26T04:09:56","modified_gmt":"2016-07-26T04:09:56","slug":"good-year-tire-company-sells-identical-radical-tires-under-t","status":"publish","type":"post","link":"https:\/\/essayparlour.com\/paperhelp\/economics\/good-year-tire-company-sells-identical-radical-tires-under-t\/","title":{"rendered":"Good year tire company sells identical radical tires under t"},"content":{"rendered":"<p>Good year tire company sells identical radical tires under the firms own brand name and to discount&#8230; Show more Good year tire company sells identical radical tires under the firms own brand name and to discount stores for private labeling. Marginal cost is constant at $10 per tire, regardless of the market its sold in. The firm has estimated the demand functions for each of it market to be: Pb= 70- 0.0005 Qb (b=brand name) Pg= 20- 0.0002 Qg (g=generic) 1) Write an equation expressing this firms total profits&#8230; Please write out the steps&#8230; 2) Determine the profit maximizing price and quantity in brand name market. I got &#8230;70-0.001 Qb=10 (why is it 0.0001) for the quantity and 70-0.0005 (60,000) for the price equation? 3) Determine the price elasticity of demand in each market I got &#8230;Eb= -2000 (40\/60,000)=-80\/60=-1\/333 (where does the -2000 come from?) &#8230;Eg= -5000 (15\/25000)=-3 (where does the -5000 come from) \u2022 Show less<\/p>\n<p><a href='http:\/\/essayparlour.com\/order'><img id='order_now' class='aligncenter' src='http:\/\/essayparlour.com\/wp-content\/uploads\/2016\/07\/8952039_orig.png' alt='Order Now' name='order_now'><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Good year tire company sells identical radical tires under the firms own brand name and to discount&#8230; Show more Good year tire company sells identical radical tires under the firms own brand name and to discount stores for private labeling. Marginal cost is constant at <\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-40","post","type-post","status-publish","format-standard","hentry","category-economics"],"_links":{"self":[{"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/posts\/40","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/comments?post=40"}],"version-history":[{"count":0,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/posts\/40\/revisions"}],"wp:attachment":[{"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/media?parent=40"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/categories?post=40"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/essayparlour.com\/paperhelp\/wp-json\/wp\/v2\/tags?post=40"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}