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Price-discriminating monopolist faces

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Reference no: EM131373011

A price-discriminating monopolist faces the following inverse demand functions:

In Market One it is P1 = 80-Q1 and in Market Two it is P2 = 60-Q2 . Marginal cost is constant at $10.

Consumers in market two can resell the good to consumers in market one at a cost of $4 per unit.

Find the profit-maximizing quantity and price charged in each market subject to the resale constraint.

Reference no: EM131373011

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