s) Suppose that a monopoly can price discriminate between two markets: 6. ( market 1 where the demand curve is given by q1 = 2 – P1, and market 2 where the demand is given by q2 = 4 – P2. Assume that the monopoly produces each unit at a cost of c = 1. (a) Find (q, pM, qM , p"). (b) Suppose that price discrimination is no longer possible. Find (qM,pM).

s) Suppose that a monopoly can price discriminate between two markets: 6. ( market 1 where the demand curve is given by q1 = 2 – P1, and market 2 where the demand is given by q2 = 4 – P2. Assume that the monopoly produces each unit at a cost of c = 1. (a) Find (q, pM, qM , p"). (b) Suppose that price discrimination is no longer possible. Find (qM,pM).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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