Question
Suppose a monopoly can sell to 2 groups, A and B. A's inverse demand curve is PA= 120 - 2QA, and B's inverse demand curve
Suppose a monopoly can sell to 2 groups, A and B. A's inverse demand curve is PA= 120 - 2QA, and B's inverse demand curve PB= 300 - 3QB. The monopoly has the total cost function C = 36Q + 100. How much will the monopolist charge each group, and which group has more elastic demand?
PA=
PB=
More elastic demand:
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A Textbook Of Mathematical Economics
Authors: Dr Chandrakant Singh
1st Edition
9353140986, 9789353140984
