A monopolist sells in two mnarkets. The inverse demand curve in200 – q1. The inverse demand curve in market 2 is p2 = 300 – q2.3.market 1 is Pi%3DThe firm's total cost function is C'(qı + 92) = (91 + q2)².The firm is able to pricediscriminate between the two markets. What price will the firm charge in market1 and market 2?

Demand in market 1 : p1=200-q1 Demand in market 2 : p2=300-q2 Total Cost : (q1+q2)2=q12+q22+2q1q2…

3. A monopolist sells in two markets. The inverse demand curve in market 1 is Pi = 200 – 91. The inverse demand curve in market 2 is p2 = 300 – q2. The firm's total cost function is C'(qı + q2) = (q1 + 92)².The firm is able to price discriminate between the two markets. What price will the firm charge in market 1 and market 2?

3. A monopolist sells in two markets. The inverse demand curve in market 1 is Pi = 200 – 91. The inverse demand curve in market 2 is p2 = 300 – q2. The firm's total cost function is C'(qı + q2) = (q1 + 92)².The firm is able to price discriminate between the two markets. What price will the firm charge in market 1 and market 2?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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