A price-discriminating monopolist of the 3rd degree sells output in 3 different markets. Some, but not all pairs on the 3 linear market demand curves are given below. The molnopolist's fixed cost = $3, 600 and marginal cost is constant at $10
|
Market 1
|
|
Market 1
|
|
Market 1
|
|
|
Price
|
Quantity
|
Price
|
Quantity
|
Price
|
Quantity
|
|
$60
|
0
|
$50
|
0
|
$40
|
0
|
|
40
|
60
|
25
|
100
|
30
|
50
|
|
25
|
105
|
10
|
160
|
15
|
125
|
|
2
|
165
|
2
|
192
|
5
|
175
|
1. What is the profit-maximizing price and output in each market?
2. In which market is demand elasticity the highest?
3. In which market is demand elasticity the lowest?
4. What are the monopolist's total combined profits from all 3 markets?