A monopolist faces two separate markets and can price discriminate accordingly. The demand in the first market is Q1 = 342p, and the inverse demand in the second market is P, = 244 – 4Q2. The total cost of production is e(Q) = 2.4(Q, + Q2). Answer the following: If rounding is needed, write your answers to 3 decimal places. a) Find the profit maximising price for the first market. b) Find the profit maximising price for the second market.

A monopolist faces two separate markets and can price discriminate accordingly. The demand in the first market is Q1 = 342p, and the inverse demand in the second market is P, = 244 – 4Q2. The total cost of production is e(Q) = 2.4(Q, + Q2). Answer the following: If rounding is needed, write your answers to 3 decimal places. a) Find the profit maximising price for the first market. b) Find the profit maximising price for the second market.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.9P

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