Question 5 A monopolist sells in two markets. The demand curve for her product is given by p₁ = 119 - 2x₁ in the first market and P₂ = 123 - 5x₂ in the second market, where x; is the quantity sold in Market i and p₁ is the price charged in Market i. She has a constant marginal cost of production, MC = 3; and no fixed costs. She can charge different prices in the two markets. What is the profit-maximizing combination of quantities for this monopolist?

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Question 5
A monopolist sells in two markets. The demand curve for her product is given by p₁ = 119 – 2x₁ in
the first market and p₂ = 123 - 5x₂ in the second market, where x; is the quantity sold in Market i
and Pi is the price charged in Market i. She has a constant marginal cost of production, MC = 3; and
no fixed costs. She can charge different prices in the two markets. What is the profit-maximizing
combination of quantities for this monopolist?
Transcribed Image Text:Question 5 A monopolist sells in two markets. The demand curve for her product is given by p₁ = 119 – 2x₁ in the first market and p₂ = 123 - 5x₂ in the second market, where x; is the quantity sold in Market i and Pi is the price charged in Market i. She has a constant marginal cost of production, MC = 3; and no fixed costs. She can charge different prices in the two markets. What is the profit-maximizing combination of quantities for this monopolist?
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