A monopolist sells a product in two different markets, Ask an Expert

Economics

A monopolist sells a product in two different markets. Demand in the first market is Q = 100 − P. Demand in the second market is Q = 100 − 2P. The firm’s cost function is given by C(Q) = 10Q.

(a) Suppose the firm can charge different prices in the two markets. Determine the prices and the firm’s profit. (b) Now suppose that the firm must charge the same price in both markets. What is the firm’s profit now.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M92197020

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