Question
A monopolist is deciding how to allocate output between two geographically separated markets(East Coast andMidwest). Demand and marginal revenue for the two marketsare: P1=15Q1MR1=152Q1 P2=352Q2MR2=354Q2
A monopolist is deciding how to allocate output between two geographically separated markets(East Coast andMidwest). Demand and marginal revenue for the two marketsare:
P1=15Q1MR1=152Q1
P2=352Q2MR2=354Q2
Themonopolist's total cost is C=5+5Q1+Q2.
What areprice, output,profits, marginalrevenues, and deadweight loss if the monopolist can pricediscriminate?(round all answers to two decimalplaces)
In market1, the price is $
10
10 and the quantity is
5
5.
In market2, the price is $
20
20 and the quantity is
7.5
7.5.
Themonopolist's profit is $
132.5
132.5 and the deadweight loss is $
68.75
68.75
What areprice, output,profits, marginalrevenues, and deadweight loss if the law prohibits charging different prices in the tworegions? (round all answers to two decimalplaces)
The market price is $
nothing
, and the quantity in market 1 is
nothing
and the quantity in market 2 is
nothing
.
The profit is $
nothing
and the deadweight loss is $
nothing
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