==+5. A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and

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==+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 P1 = 15 - Q1 MR1 = 15 - 2Q1 P2 = 25 - 2Q2 MR2 = 25 - 4Q2 The monopolist’s total cost is C = 5 + 3(Q1 + Q2).

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Microeconomics

ISBN: 9780134184241

9th Edition

Authors: Robert Pindyck, Daniel Rubinfeld

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