A monopolist sells a product in two micro-markets. Monopolist's MC = 20. The demand curves are given by: Micro-market #1: Q1 = 120 - P. Micro-market #2 :Q2 = 80-2P. The monopolist is able to charge different prices in the two micro-markets. Compare the prices in the two micro-markets with the uniform price that it would charge if it had to charge the same price in both markets. The optimal prices are:

A monopolist sells a product in two micro-markets. Monopolist's MC = 20. The demand curves are given by: Micro-market #1: Q1 = 120 - P. Micro-market #2 :Q2 = 80-2P. The monopolist is able to charge different prices in the two micro-markets. Compare the prices in the two micro-markets with the uniform price that it would charge if it had to charge the same price in both markets. The optimal prices are:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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