Suppose that the monopolist can produce with total cost: TC = 100. Assume that the monopolist sells its goods in two different markets separated by some distance. The demand curves in the first market and the second market are given by Q, 120 - 2P, and Q = 240 - 2P3. Suppose that consumers can mail the product from cheaper location to a more expensive location freely (mailing cost $0). What would be the monopolist profit? $7200 $6400 $8000 $6000
Suppose that the monopolist can produce with total cost: TC = 100. Assume that the monopolist sells its goods in two different markets separated by some distance. The demand curves in the first market and the second market are given by Q, 120 - 2P, and Q = 240 - 2P3. Suppose that consumers can mail the product from cheaper location to a more expensive location freely (mailing cost $0). What would be the monopolist profit? $7200 $6400 $8000 $6000
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.9P
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ISBN:
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Author:
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Publisher:
Cengage Learning