Crusty Cakes Sells Donuts in Eastown and Westown

question 25

Multiple Choice

Crusty Cakes sells donuts in Eastown and Westown.Its total costs are given by TC = 10(Q_E + Q_W) .The demand in each neighborhood is given by Q_E = 100 - 2P_E and Q_W = 100 - P_W .If Crusty price discriminates between the two neighborhoods,how much are its maximized profits?

• A) $850.
• B) $1,200.
• C) $2,475.
• D) $2,825.
• E) $3,250.

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Definitions:

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