Geographically divided markets

Reference no: EM1367689

A monopolist sells in two geographically divided markets, the East and West. Marginal cost is constant at $50 in both markets. Demand and marginal revenue in each and every market are as follows:

QE = 900 - 2Pe
MRe = 450 - QE
QW = 700 - PW
MRw = 700 - 2Qw

a. Find out the profit-maximizing price and quantity in each market.

b. In which market is demand more elastic?

Reference no: EM1367689

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