Company XYZ has a monopoly in its market for one of its' products and it serves 3 regional markets with regional demand functions given by. Market 1: Q1 = 9 - (0.05) P1 • Market 2: Q2 = 10 - (0.1) P2 • Market 3: Q3 = 16 - (0.2) P3 The firm must make more than 10 units: Q > 10. The firm's cost function is C-490-50Q+2.5 Q2. The marginal cost is the same across all markets. Use Excel to set up this problem and: a) Identify the profit-maximizing output values for each market. b) Identify the surplus for each market and profit for the entire market. c) The output, price, and profit if the firm were not to differentiate across the markets?

Company XYZ has a monopoly in its market for one of its' products and it serves 3 regional markets with regional demand functions given by. Market 1: Q1 = 9 - (0.05) P1 • Market 2: Q2 = 10 - (0.1) P2 • Market 3: Q3 = 16 - (0.2) P3 The firm must make more than 10 units: Q > 10. The firm's cost function is C-490-50Q+2.5 Q2. The marginal cost is the same across all markets. Use Excel to set up this problem and: a) Identify the profit-maximizing output values for each market. b) Identify the surplus for each market and profit for the entire market. c) The output, price, and profit if the firm were not to differentiate across the markets?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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