A monopolist is deciding how to allocate output between two geographically separated markets east co
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
p1=15-Q1 Mr1=15-2Q1
p2=25-2Q2 Mr2=25-4Q2
The monopolist’s total cost is c=5+3(Q1+Q2). 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?
Price: $2.99
Solution: The solution consists of 2 pages
Deliverables: Word Document![](/images/msword.png)
Deliverables: Word Document
![](/images/msword.png)