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

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