es in the nd market are given by Q = 120- 2P, and Q2 = 240-2P2. Suppose that cons uct from cheaper location to a more expensive location freely (mailing cost $0). opolist profit? $8000 $7200 $6000
es in the nd market are given by Q = 120- 2P, and Q2 = 240-2P2. Suppose that cons uct from cheaper location to a more expensive location freely (mailing cost $0). opolist profit? $8000 $7200 $6000
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.9P
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Transcribed Image Text:Suppose that the monopolist can produce with total cost: TC =
goods in two different markets separated by some distance. The demand curves in the first market and the
second market are given by Q = 120 - 2P, and Q2 = 240 - 2P,. Suppose that consumers can mail the
product from cheaper location to a more expensive location freely (mailing cost $0). What would be the
monopolist profit?
10Q. Assume that the monopolist sells its
$8000
$7200
$6000
$6400
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