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Suppose that the demand curves for a product produced by a monopoly firm in two markets are given by: Y 1 = 12 - P
Suppose that the demand curves for a product produced by a monopoly firm in two markets are given by: Y1 = 12 - P1 and Y2 = 12 - 2P2. The cost function of the firm is given by C(Y) = (12/2)Y. What will be the prices, quantities produced and consumer surpluses in the two markets and the monopolist's profit in the following situations:
(i) The monopolist can charge different prices in each market (but cannot discriminate in each market)
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