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  15  Q1…………………MR1  15  2Q1
P2  25  2Q2………………..MR2  25  4Q2
The monopolist’s total cost is C  5  3(Q1  Q2). What are price, output, profits, marginal revenues, and deadweight loss (i) if the monopolist can price discriminate? (ii) if the law prohibits charging different prices in the two regions?