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A pncediscriminating monopolist sells a good in two markets, and he is only capable of doing simple perunit pricing in each market. The inverse demand
A pncediscriminating monopolist sells a good in two markets, and he is only capable of doing simple perunit pricing in each market. The inverse demand curves in the two markets are: P1=3291 112:35-392 respectively. The nn's total cost is of producing in , q; in the two markets is (q1 + an)? " Part a (15 marks) What are the profitmaximizing quantities ql, Q2 in the two markets? ** Part b [15 marks) What are the profitmaximizing prices 131,192 in the two markets? \" Part c (15 marks] Suppose that the monopolist is now restricted to charge the same price in the two markets. What would be the market demand for this combined market? Assume that the two markets have the same size (normalized to 1). \" Part d (15 marks) Following Part c, what is the objective function of the monopolist who now cannot do third-price discrimination? (in terms of Q}
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