Q9. A monopolist produces a single homogeneous good, which he sells in two markets between

which discrimination is possible. His total cost function is:

TC = Q³ /3 - 40Q² + 1800Q + 5000

where annual total cost is in dollars and annual output in tons. The demand curves in the two markets are given by the equations

q₁= 320 - 0.4 p₁and

p₂= A - Bq₂

The monopolist achieves a profit-maximizing equilibrium at which his total output (Q = q₁ + q₂) is 60 tons per annum and his annual pure profit is $5,000.

(b) What are the values of q₁ and p₁ at this output?

(c) What are the values for total cost and total revenue at this output?

(d) What are the individual values for total revenue in each of the markets?