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 Q₁ = 120-4P₁ and Q2 = 240-2P2. Suppose that consumers can mail the product from cheaper location to a more expensive location at a mailing cost $50. What would be the monopolist profit? $5450 $6050 $6450 $5050
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 Q₁ = 120-4P₁ and Q2 = 240-2P2. Suppose that consumers can mail the product from cheaper location to a more expensive location at a mailing cost $50. What would be the monopolist profit? $5450 $6050 $6450 $5050
Chapter8: Monopoly
Section: Chapter Questions
Problem 9SQP
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Transcribed Image Text:Suppose that the monopolist can produce with total cost: TC = 10Q. 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 Q₁ = 120-4P₁ and Q₂ = 240 - 2P₂. Suppose that consumers can mail the
product from cheaper location to a more expensive location at a mailing cost $50. What would be the
monopolist profit?
$5450
$6050
O $6450
$5050
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