A monopoly seller is able to divide its overall market into two submarkets with the demand functions: P1 = 100 – 91 P2 = 120 – 292 The monopoly produces output in a single plant with the cost function (C): C = 20(q1 + q2) Find the optimal production levels (i.e. which maximize profit) for each market.

A monopoly seller is able to divide its overall market into two submarkets with the demand functions: P1 = 100 – 91 P2 = 120 – 292 The monopoly produces output in a single plant with the cost function (C): C = 20(q1 + q2) Find the optimal production levels (i.e. which maximize profit) for each market.

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 10E

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