1. A monopoly firm sells its product in two markets with the following demand functions:

p₁ = 100 - Q₁

p₂ = 120 - 2Q₂

Firm's marginal cost and average cost is constant at RM30

(i) Let say that resale is impossible between the two markets, find the profit maximizing price and quantity for the monopoly firm. (10 marks)

(ii) At the equilibrium price and quantity, determine whether the ratio of prices between the two markets matches the appropriate ratio of price elasticities. ( 8 marks)