The monopolist”s total cost is C = 5 + 3(Q l + Q 2 )” What are price, output, profits,…


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The monopolist”s total cost is C = 5 + 3(Q l + Q 2 )” What are price, output, profits,… 1 answer below ยป A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and Midwest). Demand and marginal revenue for the two markets are P 1 = 15- Q j P 2 = 25-2Q 2 MR 1 = 15-2Q j MR 2 = 25-4Q 2 The monopolist”s total cost is C = 5 + 3(Q l + Q 2 )” What are price, output, profits, marginal revenues, and deadweight loss (i) if the monopolist can price discriminate? (ii) if the law prohibits charging different prices in the two regions? Jul 24 2014 07:50 AM

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