Consider a price discriminating monopolist facing two markets for its good. The demand equations faced by the monopolist and its cost function are: Market 1: Q1 = 55 – P1 Market 2: Q2 = 70 – 2P2 Cost Function: TC(Q) = 100 + 5Q, where Q = Q1 + Q2 If the monopolist cannot maintain the separation between the two markets, calculate the optimal output level and determine the price will this be sold
Consider a price discriminating monopolist facing two markets for its good. The demand equations faced by the monopolist and its cost function are: Market 1: Q1 = 55 – P1 Market 2: Q2 = 70 – 2P2 Cost Function: TC(Q) = 100 + 5Q, where Q = Q1 + Q2 If the monopolist cannot maintain the separation between the two markets, calculate the optimal output level and determine the price will this be sold
Microeconomics A Contemporary Intro
10th Edition
ISBN:9781285635101
Author:MCEACHERN
Publisher:MCEACHERN
Chapter9: Monopoly
Section: Chapter Questions
Problem 12QFR
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Consider a
equations faced by the monopolist and its cost function are:
Market 1: Q1 = 55 – P1
Market 2: Q2 = 70 – 2P2
Cost Function: TC(Q) = 100 + 5Q, where Q = Q1 + Q2
If the monopolist cannot maintain the separation between the two markets, calculate the optimal output level and determine the price will this be sold
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