Question
A monopolist sells in two geographically divided markets, the east and the west. Marginal cost is constant at $50 in both markets. Demand and marginal
A monopolist sells in two geographically divided markets, the east and the west. Marginal cost is constant at $50 in both markets. Demand and marginal revenue in each market are as follows:
QE= 900 - 2*PE MRE= 450 - QE
QW= 700 - PW MRW= 700 - 2*QW
Find the profit-maximizing price and quantity in each market.
What is the economic profit in each market?
In which market is demand more elastic?
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Essentials of Business Driven Information Systems
Authors: Paige Baltzan, Amy Phillips
1st edition
1260004716, 978-0073376721
