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Two markets:-
A book publisher sells in two distinct markets: A and B. The marginal cost of books is essentially zero. The demand functions in the two markets are different. They are pA = 600 - 3qA and pB = 400 - 2qB, respectively.
(a) If the publisher uses the same price in each market, what is the effective demand function for the total? Restrict attention to pT.
(b) Under the conditions of part (a), what is the total profit of the publisher?
(c) Now assume that the publisher is able to discriminate by charging different prices in the two markets A and B. What is the maximum profit to the publisher?
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