A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and Midwest). Demand and marginal revenue for the two markets are: P1=20−Q1 MR1=20−2Q1 P2=30−2Q2 MR2=30−4Q2 The monopolist's total cost is C=5+5(Q1+Q2). What are price, output, profits, marginal revenues, and deadweight loss if the monopolist can price discriminate? (round all answers to two decimal places)
A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and Midwest). Demand and marginal revenue for the two markets are: P1=20−Q1 MR1=20−2Q1 P2=30−2Q2 MR2=30−4Q2 The monopolist's total cost is C=5+5(Q1+Q2). What are price, output, profits, marginal revenues, and deadweight loss if the monopolist can price discriminate? (round all answers to two decimal places)
Chapter8: Monopoly
Section: Chapter Questions
Problem 4SQ
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A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and Midwest). Demand and marginal revenue for the two markets are:
P1=20−Q1 MR1=20−2Q1
P2=30−2Q2 MR2=30−4Q2
The monopolist's total cost is C=5+5(Q1+Q2).
What are price, output, profits, marginal revenues, and deadweight loss if the monopolist can price discriminate ? (round all answers to two decimal places)
In market 1, the price is $12.50 and the quantity is 7.50
In market 2, the price is $17.50and the quantity is 6.25
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