2. This question is adapted from our textbook. A monopolist has two segmented markets with demand curves given by

p1 = 160 q1

p2 = 130 1/2 q2

where p1 and p2 are the prices charged in each market segment, and q1 and q2 are the quantities sold. Its cost function is given by c(q) = 2q 2 , where q = q1 + q2. Find the monopolist's prot maximising prices p 1 , p 2 and outputs q 1 , q 2 sold in each market.