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(Step-by-Step) A monopolist is deciding how to allocate output between two geographically separated markets east coast and Midwest. Demand and marginal

Question: A monopolist is deciding how to allocate output between two geographically separated markets east coast and Midwest. Demand and marginal revenue for the two markets are

p 1 =15-Q 1 Mr1=15-2Q 1

p 2 =25-2Q 2 Mr 2 =25-4Q 2

The monopolist’s total cost is c=5+3(Q 1 +Q 2 ). What are the price , output, profits, marginal revenues, and deadweight loss? A) if the monopolist can price discriminate? B) if the laws prohibits charging different prices in the two regions?

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