(3rd Degree Price Discrimination) A Monopolist sells beer in two separate markets. They must decide how much to sell in each market in order to maximize their total profits. The demand in the Canadian Market is : QCanada = 1120 – 10Pcanada The demand in the United States Market is: QUSA = 660 – 20PUSA MC = MR If Total Cost is: TC = 10 + 5(Qusa +Qcanada)
(3rd Degree Price Discrimination) A Monopolist sells beer in two separate markets. They must decide how much to sell in each market in order to maximize their total profits. The demand in the Canadian Market is : QCanada = 1120 – 10Pcanada The demand in the United States Market is: QUSA = 660 – 20PUSA MC = MR If Total Cost is: TC = 10 + 5(Qusa +Qcanada)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A. Calculate the
B. Calculate the Profit if he Monopolist Maximized their profit and sells in both markets?
C. In the absence of 3rd Degree
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