Question number 1 A price discriminating monopoly is deciding to sell its product in two different markets A and B. The monopoly faces a constant marginal cost of 2. The demand curve in market A is given by PA = 6 - QA3/4 while the demand curve in market B is given by PB = 7 - QB2/3 . Find the profit maximising quantities, prices and total profits in each market. Show all the steps of your calculations. (4+4) Based on your answers to (a), in which market is the price-elasticity of demand higher? (2) (a) (b)