A monopolist sells the same product at the same price into two different markets. The demand...

A monopolist sells the same product at the same price into two different markets. The demand for the product in market #1 is denoted D1(p) = 30 – 2p where p is the unit price. The demand for the product in market #2 is given by D2(p) = 80 – 3p. Explain why the elasticity of total demand is not defined at a unit price of $15.

Expert Solution

Rahul Sunny answered 2 years ago

Suppose a pure monopolist sells output in two different markets [A&B]. (third-degree price discrimination!). The demand...

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