Order the answer to: A monopolist produces a single…
| Question | A monopolist produces a single homogeneous good, which she sells in two distinct marketsbetween which price discrimination is possible. Her total cost function is: TC = 1/3 Q3 – 7.5Q2 + 370Q + 100. The demand curves in the two markets are given by: q1 = 80 – 0.2p1 and q2 = Ap2 – 5. The monopolist achieves a profit-maximizing equilibrium at which her total output (Q = q1 + q2) is 10 and she charges a price of $360 in market 1. (a)What is the profit-maximizing output in markets 1 and 2? (b) Calculate marginal revenue in either market. (c)What is the cost of producing an extra unit at the profit maximizing output? (d)What price is charged in market 2? |
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| Subject | business-economics |
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