A monopolist sells its product to two countries, labeled 1 and 2. The inverse demand curves in these countries are p, = 100 – Q, and p, = 120 – 3Q2, respectively. The monopolist's cost function is C(Q) = 0², where Q = Q1 + Q2- 5) Find the aggregate demand function and the associated inverse demand function for p < 100. Write down the monopolist's profit function and proceed to find its profit-maximizing output and profit. Calculate the equilibrium price the monopolist would charge in each country. Also calculate the output it would supply to each country.

A monopolist sells its product to two countries, labeled 1 and 2. The inverse demand curves in these countries are p, = 100 – Q, and p, = 120 – 3Q2, respectively. The monopolist's cost function is C(Q) = 0², where Q = Q1 + Q2- 5) Find the aggregate demand function and the associated inverse demand function for p < 100. Write down the monopolist's profit function and proceed to find its profit-maximizing output and profit. Calculate the equilibrium price the monopolist would charge in each country. Also calculate the output it would supply to each country.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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