Given the demand function about monopoly price, market equilibrium, demand, and supply
A firm provides two services with demands given by:
P1 = 13.5 - .01Q1
P2 = 7 - .02Q2
The services are provided with costs given by:
C = 900 + 2.5Q1 + 2Q2
Derive the factor that the price markup in this Ramsey solution is adjusted relative to a monopoly markup.