Question
Company XYZ has monopoly in its market for one of its' products and it serves 3 regional markets with regional demand functions given by. Market
Company XYZ has monopoly in its market for one of its' products and it serves 3 regional markets with regional demand functions given by.
Market 1: Q1 = 9 - (0.05) P1
Market 2: Q2 = 10 - (0.1) P2
Market 3: Q3 = 16 - (0.2) P3
The firm must make more than 10 units: Q > 10.
The firm's cost function is C=490 - 50Q + 2.5 Q2.
Marginal cost is same across all markets. Please use Excel to set up this problem and:
A) Identify the profit maximizing output values for each market.
B) Identify the surplus for each market and profit for the entire market.
C) The output, price and profit if the firm were not to differentiate across the markets?
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