A monopolist sells in two markets. The inverse demand curve in market 1 is p1 = 200 − y1. The inverse demand curve in market 2 is p2 = 400 − y2. The firm’s total cost function is c(y1 + y2) = (y1 + y2) 2 . The firm is able to price discriminate between the two markets. What are the optimal prices?

A monopolist sells in two markets. The inverse demand curve in market 1 is p1 = 200 − y1. The inverse demand curve in market 2 is p2 = 400 − y2. The firm’s total cost function is c(y1 + y2) = (y1 + y2) 2 . The firm is able to price discriminate between the two markets. What are the optimal prices?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopoly

Section: Chapter Questions

Problem 15SQ

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