Suppose that the monopolist is able to charge different prices in the two markets. The inverse demand curve in market 1 is p,=207-0.9q1. The inverse demand curve in market 2 is p2=226-0.7q2. The firm's total cost function is C(q,+q2)=(qj+q2)?. What is the firm's optimal choice of q,?

Suppose that the monopolist is able to charge different prices in the two markets. The inverse demand curve in market 1 is p,=207-0.9q1. The inverse demand curve in market 2 is p2=226-0.7q2. The firm's total cost function is C(q,+q2)=(qj+q2)?. What is the firm's optimal choice of q,?

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopoly

Section: Chapter Questions

Problem 15SQ

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