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A monopolist sells in two states and practices price discrimination by charging separate prices in each market. The monopolist produces at constant marginal cost MC = 30. Demand in Market 1 is P1 = 100 -Q1. Market 2 demand is P2= 120 - 2Q2.
a. Write down the corresponding marginal revenue (MR) for each market.
b. What profit-maximizing price will be charged in each market?
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