The monopolist can price discriminate

Reference no: EM131063300

A monopolist is deciding how to allocate output between two markets that are separated geographically. Demands for the two markets are P1 = 15 -Q1 and P2 = 25 - 2Q2. The monopolist's TC is C = 5 + 3(Q1+Q2). What are price, output, profits, and MR if:

a) The monopolist can price discriminate?

b) The law forbids (prohibits) charging different prices in the two regions?

Reference no: EM131063300

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