Suppose a monopolist is practicing price discrimination in the sale of a product by charging different...

Suppose a monopolist is practicing price discrimination in the sale of a product by charging different prices in two separate markets. Suppose the demand curves are

P1=300-Q1 P2=250-Q2

and you are informed that the cost function is TC=6(Q1+Q2).

How much should be sold in the two markets to maximize profits?
What are the prices charged?
How much profit is lost if price discrimination is made illegal?

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

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