A lobster fisherman sells lobsters in a seaside town in Maine. The lobster fisherman is a local monopolist. The lobsters can be caught at a total cost of C(Q)=50+2Q². The local demand for lobsters, measured in pounds, is as follows: P=60-4Q. Find the profit-maximizing price and quantity of lobster chosen by this monopolist. (Assume that the same price must be charged to all customers.) a. The fisherman learns that the demand for lobster from restaurants in a small town in Michigan is as follows: P= 84 - 5Q. The fisherman decides to sell as a monopolist in this Michigan market as well. Assume for simplicity that the same costs (as above) apply for serving this market. Find the profit-maximizing price and quantity of lobster the monopolist will charge and sell in this second b. market. Briefly explain two reasons why the monopolist will be able to succeed at price discriminating across the two markets. с.

A lobster fisherman sells lobsters in a seaside town in Maine. The lobster fisherman is a local monopolist. The lobsters can be caught at a total cost of C(Q)=50+2Q². The local demand for lobsters, measured in pounds, is as follows: P=60-4Q. Find the profit-maximizing price and quantity of lobster chosen by this monopolist. (Assume that the same price must be charged to all customers.) a. The fisherman learns that the demand for lobster from restaurants in a small town in Michigan is as follows: P= 84 - 5Q. The fisherman decides to sell as a monopolist in this Michigan market as well. Assume for simplicity that the same costs (as above) apply for serving this market. Find the profit-maximizing price and quantity of lobster the monopolist will charge and sell in this second b. market. Briefly explain two reasons why the monopolist will be able to succeed at price discriminating across the two markets. с.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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