Suppose that the monopolist sells its goods for two segments of the population and the demandfunctions are given by Q₁ = 120P2 and Q₂ = 320P23. If the monopolist can produce at AC=MC=6 andcan discriminate the prices what are the optimal prices, respectively?$9,$6$9, $12$12, $9$6, $9

> Marginal cost is same for both markets at MC = 6> Price elasticity of demand is reflected in…

Answered: Suppose that the monopolist sells its…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that the monopolist sells its goods for two segments of the population and the demand functions are given by Q₁ = 120P2 and Q₂ = 320P23. If the monopolist can produce at AC=MC=6 and can discriminate the prices what are the optimal prices, respectively? $9,$6 $9, $12 $12, $9 $6, $9