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7. A monopolist sells an identical product in 2 separate markets. (20 marks) The demand and cost curves are: P1 = 200 -20Q1 P2 =

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7. A monopolist sells an identical product in 2 separate markets. (20 marks) The demand and cost curves are: P1 = 200 -20Q1 P2 = 120-5Q2 The monopolist's total cost function is: TC = 35 +40Q What pricing strategy will maximize the monopolist's profits? Determine the optimal quantities for market 1 and market 2 and the associated prices. Market 1 Market 2 Q Q Q Market 1 price (5 marks) Market 1 quantity (5 marks) Market 2 price (5 marks) Market 2 quantity

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