Business, 28.11.2019 02:31, marciekinser
Aprice-discriminating monopolist with a constant marginal cost sells in two separate markets such that the goods from one market cannot be resold in the other. the profit maximizing price in market 1 is 4 and in market 2 is 8. if the price elasticity of demand in market 1 is -1.5, what is the price elasticity of demand in market 2? a) -2b) -1.2c) -2.2d) -1.5e) -2.5a monopolist sells in two states. the demand function in state 1 and 2 respectively is q1(p1)=50 – p1 and q2(p2)=90-1.5p2. the monopolist produces at a constant marginal cost of 10. if a government regulation prevents the monopolist from charging different prices in the two states, then the profit maximizing price will be p*= (hint: the monopoly serves both markets if the optimal price is below 50; assume that p* is at most 50 and solve for the monopoly that maximizes profits with the aggregate demand; confirm that the solution is below 50).
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Aprice-discriminating monopolist with a constant marginal cost sells in two separate markets such th...
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