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A price-discriminating monopolist faces the following inverse demand functions:
In Market One it is P1 = 20-Q1 where P1 is the price charged in Market 1 and Q1 is the quantity demanded in Market one. In Market Two it is P2 = 15-1.5Q2 where P2 is the price charged in Market 2 and Q2 is the quantity demanded in Market Two. Marginal cost is constant at $5. Find the profit-maximizing quantity and price charged in each market. Calculate profit in each market and joint profit.
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