A telephone company has isolated three distinct demands for its services: Weekdays: Q1=90-0.5P1 Holidays: Q2=35-0.25P2 Nights: Q3=30-0.2P3 TC=25+20Q WHERE Q=Q1+Q2+Q3 Show that as a discriminatory monopolist this company will maximize profits by charging the highest price in the market where the price elasticity of demand is lowest, by finding a) the profit maximizing level of output b)the profit maximizing price and c) the price elasticity of demand in each market Use Cramer's rule for solving simultaneous equatio

Q: $55 $50 $45 MC АТС $40 $35 $30 $25 $20 Demand = P $15 $10 $5 MR $0 40 80 120 160 200 240 Output (Q)…

A: At profit maximization:-                                   MR=MC Here, when MR=MC:- Quantity= 120…

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A: Given:

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A: * SOLUTION :-

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Q: ill earn profits of $ But if she perfectly price discriminates, she wil arn $ |in profits.

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