Suppose that the monopolist can produce with total cost: TC = 20Q. Assume that the monopolist sells its goods in two different markets separated by some distance. The demand curves in the first market and the second market are given by Q, = 240-4P, and Q2 = 360- 2P,. Suppose that consumers can mail the product from cheaper location to a more expensive location at a mailing cost $24. What would be the monopolist profit? %3D

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.9P
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Suppose that the monopolist can produce with total cost: TC = 200. Assume that the monopolist sells its
goods in two different markets separated by some distance. The demand curves in the first market and the
second market are given by Q, = 240-4P and Q2 = 360-2P,. Suppose that consumers can mail the
product from cheaper location to a more expensive location at a mailing cost $24. What would be the
monopolist profit?
$12672
O $14896
$13844
$11516
Transcribed Image Text:Suppose that the monopolist can produce with total cost: TC = 200. Assume that the monopolist sells its goods in two different markets separated by some distance. The demand curves in the first market and the second market are given by Q, = 240-4P and Q2 = 360-2P,. Suppose that consumers can mail the product from cheaper location to a more expensive location at a mailing cost $24. What would be the monopolist profit? $12672 O $14896 $13844 $11516
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