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A monopolist is considering third degree price discrimination.It estimates that the inverse demand curves of its two potential market segments are: Segment A:P(QA)=12010QA Segment B:P(QB)=605QB

A monopolist is considering third degree price discrimination.It estimates that the inverse demand curves of its two potential market segments are:

Segment A:P(QA)=12010QA

Segment B:P(QB)=605QB

The firm operates a single plant.Assuming fixed costs are negligible, its costs are such that:

ATC=MC=10

.

If the monopolistis unable to price discriminate, what will be the equilibrium price and quantity?

What is the deadweight loss?

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