Suppose that the monapolist can produce with total cost: TC 100. Assume that the monopolst sells its goods in two different markets separated by some distance. The demand curves in the first market and the second market are given by 0, 120 -4 and Q= 240 - 2 Suppose that consumers can mail the product from cheaper location to a more expensive location at a mailing cost $24. What would be the monopolist profit? $6116 $4832 $5862 $5384
Suppose that the monapolist can produce with total cost: TC 100. Assume that the monopolst sells its goods in two different markets separated by some distance. The demand curves in the first market and the second market are given by 0, 120 -4 and Q= 240 - 2 Suppose that consumers can mail the product from cheaper location to a more expensive location at a mailing cost $24. What would be the monopolist profit? $6116 $4832 $5862 $5384
Chapter8: Monopoly
Section: Chapter Questions
Problem 7SQP
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Transcribed Image Text:Suppose that the monopalist can produce with total cost: TC = 100. Assume that the monopolist sells its
goods in two different markets separated by some distance. The demand curves in the first market and the
second market are given by Q,= 120 - 4P, and Q = 240 - 2P. Suppose that consumers can mail the
product from cheaper location to a more expensive location at a mailing cost $24. What would be the
monopolist profit?
$6116
$4832
$5862
$5384
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