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Consider a monopolistic rm selling the same product in two completely separate markets with the following demand schedules: Quantity {Q11 3 1 2 3 4
Consider a monopolistic rm selling the same product in two completely separate markets with the following demand schedules: Quantity {Q11 3 1 2 3 4 5 5 2 3 Price {P11 24 21 13 15 12 3 5 3 o ouantitv {Q21 3 1 2 3 4 5 5 2 3 Price {P21 3 2 5 5 4 3 2 1 o The marginal cost of this rm is equal to its average total cost and is constant at $3 per unit produced {note that this also means that there are no xed costs}. Based on this information use excel to calculate marginal revenues and set up a diagram that shows the demand and the marginal revenue curves of this rm as well as the quantities and prices it should charge in each market in order to maximize overall prots from the two markets. Make sure that you include the total prot as a part of your
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