A shipping company has two major categories of freight: manufactured items and semi-manufactured raw materials.

A shipping company has two major categories of freight: manufactured items and semi-manufactured raw materials.
The demand functions for these two classes of goods are P1=100-2Q1 and P2=80-Q2 where Q is tons of freight moved. The total cost function for the firm is TC=20+4(Q1+Q2)
What are the profit-maximizing levels of price and output for the two freight categories if the firm price discriminates?







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