onopolist if it can charge different prices in these markets? 2. What is the optimal price if the monopolist must charge the same price in each market? 3. How much total consumers’ surplus changes between the two separate prices and the same price cases?

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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Suppose a monopolist faces two markets withdemand curves given by


D1(p1) = 200 − p1
D2(p2) = 100 − 2p2
Assume that the monopolist’s cost function is c(y) = y2


1. What is the optimal prices for the monopolist if it can charge different prices in these markets?
2. What is the optimal price if the monopolist must charge the same price in each market?
3. How much total consumers’ surplus changes between the two separate prices and the same
price cases?

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