Solve for equilibrium quantities, prices, in the three markets, and equilibrium profit for the firm.

Graph the equilibrium solution, This involves graphing three demand curves, with their marginal revenue curves and the firm cost curves, showing MC, ATC, AVC, and equilibrium output.

Example 4 To make the above example more concrete, let us now give a numerical version. Suppose that our monopolistic firm has the specific average-revenue functions P1=634Q1 so that R1 = P101=6301'Qf epicsso; R2 = P202 =10502SQ 93:75-60; Rs: P303 =7SQs-6Q and that the total-cost function is C = 20 + 150 Then the marginal functions will be R3263801 R'z=1051OQZ R=751203 C'=15 When each marginal revenue R:- is setequal to the marginal cost C' of the total output. the equilibrium quantities are found to be 07:6 {33:9 and 03:5 3 Thus Q'=ZQ'{=20 r'=1 Substituting these solutions into the revenue and cost equations, we get at = 679 as the total prot from the triple~mar|