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SupposeamonopolistMsellstwoproducts,AandB.DemandforAis q A =1000 p A 0 . 5 p B ,andthedemandforBis q B =1000 p B 0 . 5 p A . AreAandBcomplementsorsubstitutes? IfthemarginalcostsofbothAandBarezero,whatareprofitmaximizingprices?
- SupposeamonopolistMsellstwoproducts,AandB.DemandforAisqA=1000pA0.5pB,andthedemandforBisqB =1000pB0.5pA.
- AreAandBcomplementsorsubstitutes?
- IfthemarginalcostsofbothAandBarezero,whatareprofitmaximizingprices?
- IfBwassoldbyaseparatefirm,butatthesamepriceasyoufoundin(b),wouldMraiseorloweritspriceforA?
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