question archive The Long-Drive Golf Company manufactures a new line of golf clubs
The Long-Drive Golf Company manufactures a new line of golf clubs
Subject:ManagementPrice: Bought3
The Long-Drive Golf Company manufactures a new line of golf clubs. The Cushion Bag Company makes a special golf bag that protects the delicate shirts on these clubs. The respective prices are Pc and Pb for the clubs and bags. The marginal cost for producing either product is 100. Demand for each product is:Q = 1000 ? (Pc + Pb) when Pc + Pb is 1000 or less, and zero otherwise.How will the two companies price the products if they do not cooperate? What are the resulting quantities and profits? What the prices, quantities, and profits if the two companies price cooperatively?
