Suppose a monopolist faces two markets with demand curves given by D1(p1) = 200 -p1 D2(p2) = 100 -2p2 Assume that the monopolist’s cost function is c(y) = y^2 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? Please answer this correctly, quickly,and legibly. This is my third submission of the same question. The first one was wrong and unredeemable the second one was not legible.
Suppose a monopolist faces two markets with demand curves given by D1(p1) = 200 -p1 D2(p2) = 100 -2p2 Assume that the monopolist’s cost function is c(y) = y^2 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? Please answer this correctly, quickly,and legibly. This is my third submission of the same question. The first one was wrong and unredeemable the second one was not legible.
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.9P
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Question
Suppose a monopolist faces two markets with
D1(p1) = 200 -p1
D2(p2) = 100 -2p2
Assume that the monopolist’s cost function is c(y) = y^2
1. What is the optimal prices for the monopolist if it can charge different prices in these markets?
2. What is the optimal
3. How much total
price cases?
Please answer this correctly, quickly,and legibly. This is my third submission of the same question. The first one was wrong and unredeemable the second one was not legible.
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