Problem Set 4 A1 10550
B1 27
B2 44
C 15
Demand curve for the customers willing to pay higher price is d1 = A1 – B1*p1.
Demand curve for the more price-sensitive customers is d2 = A1 – B2*p2.
Assume the production cost for each product (standard and customized) is c = $C per unit. (Values of A1, B1, B2, and C are provided in the below data set.)
What price should your organization charge each segment if its goal is to maximize profits?

If your organization were to charge a single price over both segments, what should it be? How much increase in profits does differential pricing provide?
If the production is limited to 4500 units, what should you charge to each segment?

Suppose a firm faces a fixed price of output, 푝푝= 1200. the firm hires workers from a union at a daily wage, 푤푤, to produce output according to the production function 푞푞= 2퐸퐸12. there are 225 workers in the union. any union worker who does not work for this firm is guaranteed to find nonunion employment at a wage of $96 per day. a.what is the firm’s labor demand function? b.if the firm is allowed to choose 푤푤, but then the union decides how many workers to provide (up to 225) at that wage, what wage will the firm set? how many workers will the union provide? what is the firm’s output and profit? what is the total income of the 225 union workers? c.now suppose that the union sets the wage, but the firm decides how many workers to hire at that wage (up to 225). what wage will the union set to maximize the total income of all 225 workers? how many workers will the firm hire? what is the firm’s output and profit? what is the total income of the 225 union workers? [hint: to maximize total income of union, take the first order condition with respect to w and set equal to 0.]

Suppose that a firm is considering moving from a batch process to an assembly-line process to better meet evolving market needs. what concerns might the following functions have about this proposed process change: marketing, finance, human resources, accounting, and information systems?

Describe the three different ways the argument section of a cover letter can be formatted