A monopolistic firm operates in two separate markets. No trade is possible between market A and market B. The rm has calculated the demand functions for each market as follows: Market A: P1 = 15 Q1; Market B: P2 =11 Q2 The company estimates its total cost function to be TC = 4Q. Build the prot function, calculate quantity, total reyenue and prot. Which strategy is better? Price discrimination or unifbrm pricing? a. When the company maximizes its prot and charges the same price in both markets ANSWER: Q = 9; p = 8.5; TR = 76.5; TC = 36; profit = 40.5 b. when the company charges different prices in each market ANSWER: A: Q1 = 5.5; P1 = 9.5; TR1 = 52.25; Profit] = 30.25 B: Q2 = 3.5; P2 = 7.5; TR: = 26.25; Protz = 12.25