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A monopolistic firm operates in two separate markets. No trade is possible between market a and market b. The firm has find outd the demand functions for each market as follows:

Market A P = 15- Q
Market B P = 11- Q

The company estimates its total cost function to be TC= 4Q. find out:

A. Quantity, total revenue and profit when the company maximizes its profit and charges the same price in both markets.

B. Quantity, total revenue and profit when the company charges different prices in each market and maximizes its total profit.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M941041

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