Degree Price Discrimination. º Exercise: A monopolist faces two market segments each with a well-defined demand function. Demand in market 1 is P = 10-Q₁ Demand in market 2 is P = 20 - Q₂ Total Cost = 5 +Q² If the monopolist exercises his monopoly power to price discriminate in the two markets, what are the prices and quantity he charges in each market? What is his profit? b. If the monopolist cannot price discriminate, what is the market price and quantity? a.

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