Suppose a monopolist sells in two distinct markets.The demand and marginal revenue for the first market are given by P₁ = 240 - 2Q₁ and MR₁ = 240 - 4Q₁,respectively,where Q₁ is the quantity demanded and P₁ is the price paid by the first group.The demand and marginal revenue for the second market are given by P₂ = 120 - Q₂ and MR₂ = 120 - 2Q₂,respectively,where Q₂ is the quantity demanded and P₂ is the price paid by the second group.The monopoly's marginal cost is given by MC = 4/9 Q,where Q is the total output produced by the monopoly.

Question

Suppose a monopolist sells in two distinct markets.The demand and marginal revenue for the first market are given by P<sub>1</sub> = 240 - 2Q<sub>1</sub> and MR<sub>1</sub> = 240 - 4Q<sub>1</sub>,respectively,where Q<sub>1</sub> is the quantity demanded and P<sub>1</sub> is the price paid by the first group.The demand and marginal revenue for the second market are given by P<sub>2</sub> = 120 - Q<sub>2</sub> and MR<sub>2</sub> = 120 - 2Q<sub>2</sub>,respectively,where Q<sub>2</sub> is the quantity demanded and P<sub>2</sub> is the price paid by the second group.The monopoly's marginal cost is given by MC = 4/9 Q,where Q is the total output produced by the monopoly.

Quizplus · Accepted Answer

The Answer of Suppose a monopolist sells in two distinct markets.The demand and marginal revenue for the first market are given by P₁ = 240 - 2Q₁ and MR₁ = 240 - 4Q₁,respectively,where Q₁ is the quantity demanded and P₁ is the price paid by the first group.The demand and marginal revenue for the second market are given by P₂ = 120 - Q₂ and MR₂ = 120 - 2Q₂,respectively,where Q₂ is the quantity demanded and P₂ is the price paid by the second group.The monopoly's marginal cost is given by MC = 4/9 Q,where Q is the total output produced by the monopoly.

Suppose a Monopolist Sells in Two Distinct Markets