A monopolist is operating in two separate markets. The inverse demand functions for the two markets are P1 = 35 – 2.5Q1 and P2 = 30 – 2Q2. The monopolist’s total cost function is TC(Q) = 8 + 5(Q1 + Q2). The monopolist can price discriminate. What kind of price discrimination is relevant here? What is the profit-maximizing price in each market? What is the monopolist’s profit?

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