Assume that a monopolist is able to sell rocks in two separate markets, market A and...

Assume that a monopolist is able to sell rocks in two separate markets, market A and market B. Assume that there is no trade between these markets. Assume that the monopolist has a constant marginal cost of $10. Assume that the demand curve for rocks in market A is as follows: P=200-Q

Assume that the demand curve for rocks in market B is as follows: P=100-2Q

1. In order to maximize profits, what price will the monopolist charge in each market?

2. What is output in each market?

3. What are profits for the monopolist in each market?

Solutions

Expert Solution

Rahul Sunny answered 1 year ago

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