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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(QE + QW) .The demand in each neighborhood is given by QE = 100 - 2PE and QW = 100 - PW .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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