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Question
Xenophobic Car Palace (XCP) purchases late-model domestic automobiles at wholesale auctions and sells them in Charleston and Savannah. XCP's total cost is given by TC = 100(QC + QS) + (QC + QS)2. The demand in each city for such gems is given by QC = 1,000 - 2PC and QS = 500 - PS. If XCP price discriminates between the two cities, how many cars will it sell in Charleston and Savannah?a. QC = 100, QS = 50
b. QC = 50, QS = 100
c. QC = 75, QS = 75
d. QC = 100, QS = 100
e. QC = 50, QS = 50
Answer
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