A monopolist is deciding how to allocate output between two geographically separated markets. The demand curve for the firm's output in each market is: P1 = 4,000 - 100Q1 P2 = 2,000 - 50Q2 Where P1 and P2 are the prices of the product in each market and Q1 and Q2 are the amounts sold in each market. The firm's marginal cost curve is: MC = 25Q where Q is the firm's entire output (Q = Q1 + Q2) a) how many units should the firm sell in each market? (Keep Q1 and Q2 in decimal f
A monopolist is deciding how to allocate output between two geographically separated markets. The demand curve for the firm's output in each market is: P1 = 4,000 - 100Q1 P2 = 2,000 - 50Q2 Where P1 and P2 are the prices of the product in each market and Q1 and Q2 are the amounts sold in each market. The firm's marginal cost curve is: MC = 25Q where Q is the firm's entire output (Q = Q1 + Q2) a) how many units should the firm sell in each market? (Keep Q1 and Q2 in decimal f
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
Problem 19SQ
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A monopolist is deciding how to allocate output between two geographically separated markets. The demand curve for the firm's output in each market is:
P1 = 4,000 - 100Q1
P2 = 2,000 - 50Q2
Where P1 and P2 are the prices of the product in each market and Q1 and Q2 are the amounts sold in each market. The firm's marginal cost curve is:
MC = 25Q
where Q is the firm's entire output (Q = Q1 + Q2)
a) how many units should the firm sell in each market? (Keep Q1 and Q2 in decimal form)
b) What price should it charge in the first market? (Use Q1 in decimal form)
c) What price should it charge in the second market? ( Use Q2 in decimal form)
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