A monopolist operates in 2 markets. The demand curve for market 1 is Q₁ = 600-3P1while the demand curve for market 2 is Q2 = 600 - 2P2 Assume that marginal costsis the same in both markets and constant at 20. If the monopolist can practise 3rddegree price discrimination then the profit maximising prices and quantities in eachmarket will beQ1-180, P1-110. Q2-240, P2=260Q1-100, P1-140, Q2-150, P2-180.Q1-270, P1-110. Q2-240, P2=260Q1-270, P1-110. Q2-280, P2=160Q1=180, P1=110. Q2-140, P2=230

The objective of the question is to find the profit maximizing prices and quantities in each market…

Answered: A monopolist operates in 2 markets. The…

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.1P

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