1.5. 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

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?

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P = 15-Q P = 25-2Q2 MR = 15-2Q MR-25-402