A monopolist sells Soma at the same price into two different markets. The demand for Soma in narket #1 is denoted D1(p) = 30 – 2p where p is the unit price. The demand for Soma in market #2 is given by D2(p) = 80 – 3p. Assume the monopolist's cost function is C(q) = cq where q represents the quantity produced. 5. If c = 1.5 compute the optimal price for the monopolist to charge using the markup formula.
A monopolist sells Soma at the same price into two different markets. The demand for Soma in narket #1 is denoted D1(p) = 30 – 2p where p is the unit price. The demand for Soma in market #2 is given by D2(p) = 80 – 3p. Assume the monopolist's cost function is C(q) = cq where q represents the quantity produced. 5. If c = 1.5 compute the optimal price for the monopolist to charge using the markup formula.
Chapter1: Making Economics Decisions
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![Question 1
A monopolist sells Soma at the same price into two different markets. The demand for Soma in
market #1 is denoted D1(p) = 30 – 2p wherep is the unit price. The demand for Soma in market
#2 is given by D½(p) = 80 – 3p. Assume the monopolist's cost function is C(q) = cq where
represents the quantity produced.
5. If c = 1.5 compute the optimal price for the monopolist to charge using the markup formula.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F949a02b7-d820-4789-a7d2-1ac7816bfe7e%2F7682d949-a7ab-479a-9c31-d60ceac684af%2F00z28aw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 1
A monopolist sells Soma at the same price into two different markets. The demand for Soma in
market #1 is denoted D1(p) = 30 – 2p wherep is the unit price. The demand for Soma in market
#2 is given by D½(p) = 80 – 3p. Assume the monopolist's cost function is C(q) = cq where
represents the quantity produced.
5. If c = 1.5 compute the optimal price for the monopolist to charge using the markup formula.
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