A monopolist faces two separate markets and can price discriminate accordingly. The demand in the first market is Q1 = 345p, and the inverse demand in the second market is P2 = 439 – 4Q2. The total cost of production is c(Q) = 1.5(Q1 + Q2). Answer the following: If rounding is needed, write your answers to 3 decimal places. a) Find the profit maximising price for the first market. b) Find the profit maximising price for the second market.

A monopolist faces two separate markets and can price discriminate accordingly. The demand in the first market is Q1 = 345p, and the inverse demand in the second market is P2 = 439 – 4Q2. The total cost of production is c(Q) = 1.5(Q1 + Q2). Answer the following: If rounding is needed, write your answers to 3 decimal places. a) Find the profit maximising price for the first market. b) Find the profit maximising price for the second market.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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