The Financial Herald, a weekly newspaper specializing in corporate financial news, is purchased by both business people and students. A marketing research
firm has estimated the two linear demand and marginal revenue functions shown in the following figure:
MRb=120-0.04Qb and MRs=40-0.01Qs
MRb is the estimated marginal revenue for the business readers, and MRs is the estimated marginal revenue for the student readers. The production department at The Financial
Herald estimates s linear marginal cost function for newspaper production which is: MC=16+0.002Q.
a. How many total copies should The Financial Herald print each week? ‘
b. How many copies should be sold to business readers? How many copies should be sold to students? What price should business readers be charged? What price should students be charged