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 - 2Pe
MRe = 450 - Qe
Qw = 700 - Pw
MRw = 700 - 2Qw
a.Find the profit-maximizing price and quantity in each market.
b.In which market is demand more elastic?
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OPEC Twenty Years And Beyond
Authors: Ragaei El Mallakh
1st Edition
1317244737, 9781317244738
