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A Monopolistwill construct a single plant to serve twospecially separated markets in which she can charge different prices without fear of competition or resale between
A Monopolistwill construct a single plant to serve twospecially separated markets in which she can charge different prices without fear of competition or resale between markets. The monopolist locates her plant at market 2. The monopolist's demand and production cost functions are as follows:
P1=200-4q1Market demand in market 1
P2=240-6q2Market demand in market 2
TC= 160(q1+q2)-2(q1+q2)2 Cost function
Determine the optimal values for q1,q2,p1,p2
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