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21. (6 marks) A monopoly rm sells into two markets, where: P1= 300 - Q1 so MR1= 300 - 2 Q1 P2 = 100 -
21. (6 marks) A monopoly rm sells into two markets, where: P1= 300 - Q1 so MR1= 300 - 2 Q1 P2 = 100 - 0.5 Q2 so MR2= 100 - Q2 and TC = 13,000 + 50 Q, MC = 50 a) (3 marks) Find the standard unconstrained solution (i.e. price discrimination is allowed, no quantity limit). (Pl, Q1,P2, Q2, Revenue and prot) b) (3 marks) Impose a quantity limit of 127 and redo (PD. is still OKI)
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