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ECO - A monopolist sells in two geographically divided markets

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Question;A monopolist sells in two geographically divided markets, the East and the West. Marginal cost isconstant at $50 in both markets. Demand and marginal revenue in each market are as follows:QE = 900 - 2PEMRE = 450 - QEQW = 700 - PWMRW = 700 - 2QWa. Find the profit-maximizing price and quantity in each market.b. In which market is demand more elastic?

 

Paper#56190 | Written in 18-Jul-2015

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