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Question: Sal's satellite company broadcasts TV to subscribers in Los Angeles and New York. The demand func...

Show transcribed image text Sal's satellite company broadcasts TV to subscribers in Los Angeles and New York. The demand functions and marginal revenues for each of these two groups are P_NY = 240 – 4Q_NY, MR_NY = 240 – 8Q_NY P_LA = 200 – 2Q_LA MR_LA = 200 – 4Q_LA where Q is in thousands of subscriptions per year and P is the subscription price per year. Marginal cost is $40 in both cases. What are the profit-maximizing price and quantity for the New York market? What are the profit-maximizing price and quantity for the Los Angeles markets? Q_NY = P_NY =

Sal's satellite company broadcasts TV to subscribers in Los Angeles and New York. The demand functions and marginal revenues for each of these two groups are P_NY = 240 – 4Q_NY, MR_NY = 240 – 8Q_NY P_LA = 200 – 2Q_LA MR_LA = 200 – 4Q_LA where Q is in thousands of subscriptions per year and P is the subscription price per year. Marginal cost is $40 in both cases. What are the profit-maximizing price and quantity for the New York market? What are the profit-maximizing price and quantity for the Los Angeles markets? Q_NY = P_NY =