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Calculating equilibrium price and quantity for a monopolist.

A Monopolist is deciding how to allocate output among two markets. The two markets are separated geographically. Demand and marginal revenue for the two markets are given by:

P1 = 50- Q1
P2 = 25 - 0.5Q2

The monopolist's can serve both markets at a constant marginal cost of $10.00

Illustrate what are price, output, profits marginal revenue and deadweight loss (in each market) if the monopolist can price discriminate?

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M917107

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