demand curve in market 1 is p1 = 200 – y1. The inverse demand curve in market 2 is p2 = 400 – y2. The firm's total cost function is c(y1 + y2) = (y1 + y2) 2 . The firm is able to price discriminate between the two markets. What are the optimal prices?
demand curve in market 1 is p1 = 200 – y1. The inverse demand curve in market 2 is p2 = 400 – y2. The firm's total cost function is c(y1 + y2) = (y1 + y2) 2 . The firm is able to price discriminate between the two markets. What are the optimal prices?
Chapter8: Monopoly
Section: Chapter Questions
Problem 15SQ
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