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Solve with step by step order working Suppose a monopolist produces good x and serves two markets. The goods can be transported between the two

Solve with step by step order working

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Suppose a monopolist produces good x and serves two markets. The goods can be transported between the two markets at no cost, so the firm must charge uniform prices in both markets. The demand schedule in the rst market is P: = 200 2Q. , where P1 is the price of the good and Q. is the amount sold in the market. In the second market, the demand is P2 = 140 - Q2, where P2 is the price and Q2 the quantity. The lm's overall marginal cost is MC = 90 + Q] + Q2. What price should the rm charge? Question 2 (10 marks) Fiji Airways has space for 300 passengers on each trip from Nadi to Sydney- There are two market segments: business class passengers and economy class passengers. The demand curve for the business class segment is Q: = 750 - 4P1. The demand curve for the economy class segment is Q2 = 350 - 2P2. In each equation, Q denotes the number of passengers on a (one-way} trip and P denotes the ticket price per day. The marginal cost of serving a passenger of either type is $100 per person per day. Assuming that Fiji Airways can price discriminate: a) What is the prot-maximizing number of passengers of each type? b} What is the prot-maximizing ticket price for each type of passenger

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