A monopolist sells in two geographically divided;markets, the East and the West. Marginal cost is;constant at $50 in both markets. Demand and marginal;revenue in each market are as follows;QE = 900 - 2PE;MRE = 450 - QE;QW = 700 - PW;MRW = 700 - 2QW;a. Find the profit-maximizing price and quantity in;each market.;b. In which market is demand more elastic?
Paper#18828 | Written in 18-Jul-2015Price : $32