The monopoly can verify consumers to decide which market they belong to so that it charge different prices in the two markets. The cost of production is C(Q) = 10Q where Q-Q1+Q2. a) Please write out the total profit function for the monopoly as functions of Q₁ and Q2. b) Find out the profit maximizing Q₁ and Q2, and prices P₁ and P₂ charged by the monopoly in each of these two markets, figure out the total profit. c) = Suppose the monopoly must charge the same price in both market, please calculate the price and quantity for the monopoly, what would be the profit for the monopoly

The monopoly can verify consumers to decide which market they belong to so that it charge different prices in the two markets. The cost of production is C(Q) = 10Q where Q-Q1+Q2. a) Please write out the total profit function for the monopoly as functions of Q₁ and Q2. b) Find out the profit maximizing Q₁ and Q2, and prices P₁ and P₂ charged by the monopoly in each of these two markets, figure out the total profit. c) = Suppose the monopoly must charge the same price in both market, please calculate the price and quantity for the monopoly, what would be the profit for the monopoly

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 3SCQ: Suppose the local electrical utility, a legal monopoly based on economies of scale, was split into...

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