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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:
QEast= 900 - 2*PEast MREast= 450 - QEast QWest= 700 - PWest MRWest= 700 - 2*QWest
Find the profit-maximizing price and quantity in each market.
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