A monopolist sells its product in two markets. The demand curve in each market is Market 1: P, - 36-Q, Market 2: P2 = 60 - 202 Total cost is C = 100 + 2Q + 0.5Qʻ, where total output Q = Q, + Q. Therefore, MC = ACIAQ = 2 + Q. If the monopolist can price discriminate, it should sell Q, = units in market 1 and Q, =units in market 2 in order to maximize its profit. (Enter your responses as integers.) The profit-maximizing price to charge in each market is P, = S in market 1 and P, = $ in market 2. (Enter your responses as integers.) The monopolist will make a profit of $. (Enter your response as an integer.) You need not do any calculations to answer the following questions. If price discrimination were declared illegal and the monopolist had to charge the same price in both markets, that price would be and the firm's total profit would
A monopolist sells its product in two markets. The demand curve in each market is Market 1: P, - 36-Q, Market 2: P2 = 60 - 202 Total cost is C = 100 + 2Q + 0.5Qʻ, where total output Q = Q, + Q. Therefore, MC = ACIAQ = 2 + Q. If the monopolist can price discriminate, it should sell Q, = units in market 1 and Q, =units in market 2 in order to maximize its profit. (Enter your responses as integers.) The profit-maximizing price to charge in each market is P, = S in market 1 and P, = $ in market 2. (Enter your responses as integers.) The monopolist will make a profit of $. (Enter your response as an integer.) You need not do any calculations to answer the following questions. If price discrimination were declared illegal and the monopolist had to charge the same price in both markets, that price would be and the firm's total profit would
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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E2
Transcribed Image Text:Market 1: P, =36- Q,
Market 2: P, 60 - 202
Total cost is C= 100 + 20 + 0.50, where total output Q= Q, +Q, Therefore, MC = ACIAQ = 2+ Q.
If the monopolist can price discriminate, it should sell Q, =8 units in market 1 and Q, =10 units in market 2 in order to maximize its profit. (Enter your responses as integers.)
The profit-maxcimizing price to charge in each market is P, = $ 28 in market 1 and P, = $ 40 in market 2. (Enter your responses as integers.)
The monopolist will make a profit of $ 326. (Enter your response as an integer.)
You need not do any calculations to answer the following questions. If price discrimination were declared illegal and the monopolist had to charge the same price in both markets, that price would be between $28 and $40. and the
profit would decrease
Transcribed Image Text:A monopolist sells its product in two markets. The demand curve in each market is
Market 1: P, = 36 - Q,
Market 2: P2 = 60 – 2Q2
Total cost is C = 100 + 2Q + 0.5Q², where total output Q = Q, + Q,. Therefore, MC = ACIAQ = 2 + Q.
If the monopolist can price discriminate, it should sell Q, =
units in market 1 and Q2 =
units in market 2 in order to maximize its profit. (Enter your responses as integers.)
The profit-maximizing price to charge in each market is P, = $
in market 1 and P, = $ in market 2. (Enter your responses as integers.)
The monopolist will make a profit of $. (Enter your response as an integer.)
You need not do any calculations to answer the following questions. If price discrimination were declared illegal and the monopolist had to charge the same price in both markets, that price would be
and the firm's total
profit would
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