A monopolist faces two markets with demand functions given by q1 = 120 − p1 q2 = 120 − 2p2 The monopolist has no fixed costs of production, and the marginal cost of production is $10.   Suppose the monopolist charges the same price per unit of output in both markets. How much output is produced? What is the price of output? What is the monopolist’s profit?

Microeconomics
13th Edition
ISBN:9781337617406
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter10: Monopoly
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A monopolist faces two markets with demand functions given by q1 = 120 − p1

q2 = 120 − 2p2

The monopolist has no fixed costs of production, and the marginal cost of production is $10.

 

Suppose the monopolist charges the same price per unit of output in both markets. How much output is produced? What is the price of output? What is the monopolist’s profit?

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