40=240.80 VT,or ON=25and 40=200-404,0rQL=40 Determine the price in each submarket by substituting the profit-maximizing quantity into the respective demand equation: Pwy=240-(4)(25)=$140and PL4=200-(240)=$120. b.Asa consequence of a new satellite that the Pentagon recently deployed,people in LosAngeles receive Sal's New York broadcasts,and people in New York receive Sal's Los Angeles broadcasts.As a result,anyone in New York or Los Angeles can receive Sal's broadeasts by subseribing in either city.Thus Sal can charge only a single price.What price should he charge,and what quantities will he sell in New York and Los Angeles? Given this new satellite,Sal can no longer separate the two markets,so he now needs to consider the total demand function,which is the horizontal summation of the LA and NY demand functions.Above a price of 200(the vertical intercep of the demand finction for Los Angeles viewers)the total we add the two demands: Qr=60-0.25P+100-0.50P,orQr=160-0.75P Rewriting the demand function results in 1601 P=05-0750 Now total revenue PO=(213.3-1.30)0,or 213.30-1.30,and therefore. MR=213.3-2.60 Setting marginal revenue equal to marginal cost to determine the profit-maximizing quantity: 213.3-2.60=40,0rQ=65. Substitute the profit-maximizing quantity into the demand equation to determine price: 65=160-0.75PorP=$126.67. 40 = 240 - 8QNY, or QNY = 25 and 40 = 200 - 4QLA, or QLA = 40. Determine the price in each submarket by substituting the profit-maximizing quantity into the respective demand equation: PNY = 240 - (4)(25) = $140 and PLA = 200 - (2)(40) = $120. b. As a consequence of a new satellite that the Pentagon recently deployed, people in Los Angeles receive Sal’s New York broadcasts, and people in New York receive Sal’s Los Angeles broadcasts. As a result, anyone in New York or Los Angeles can receive Sal’s broadcasts by subscribing in either city. Thus Sal can charge only a single price. What price should he charge, and what quantities will he sell in New York and Los Angeles? Given this new satellite, Sal can no longer separate the two markets, so he now needs to consider the total demand function, which is the horizontal summation of the LA and NY demand functions. Above a price of 200 (the vertical intercept of the demand function for Los Angeles viewers), the total demand is just the New York demand function, whereas below a price of 200, we add the two demands: QT = 60 – 0.25P + 100 – 0.50P, or QT = 160 – 0.75P. Rewriting the demand function results in  P = 160 0.75 − 1 0.75 Q. Now total revenue = PQ = (213.3 – 1.3Q)Q, or 213.3Q – 1.3Q 2 , and therefore, MR = 213.3 – 2.6Q. Setting marginal revenue equal to marginal cost to determine the profit-maximizing quantity: 213.3 – 2.6Q = 40, or Q = 65. Substitute the profit-maximizing quantity into the demand equation to determine price: 65 = 160 – 0.75P, or P = $126.67