Question
a monopoly operates in two different markets with the following demands Q^a = 100-p Q^5 = 60-p the total cost function is: TC =20Q a)
a monopoly operates in two different markets with the following demands
Q^a = 100-p
Q^5 = 60-p
the total cost function is:
TC =20Q
a) if the monopoly considers both markets combined (acting as a single-price monopoly) what quantity it produces? what price does it charge? what are it's profits?
Qmonopoly=
pmonopoly=
profits=
b) if the monopoly practices third-degree price discrimination (considering the two market separately) what quantity does it produce in each market? what price does it charge in each market? what are the total profits (combined from both markets)?
Q^A=
p^A=
Q^B=
p^B=
profits=
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started