Suppose that the monopolist can produce with total cost: TC = 20Q. 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 = 240-4/₁ and Q₂ = 360-212. Suppose that consumers can mail the product from cheaper location to a more expensive location at a mailing cost $24. What would be the monopolist profit?

Economics For Today
10th Edition
ISBN:9781337613040
Author:Tucker
Publisher:Tucker
Chapter9: Monopoly
Section: Chapter Questions
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Suppose that the monopolist can produce with total cost: TC = 20Q. 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 = 240-41, and Q₂ = 360 - 27½. Suppose that consumers can mail the
product from cheaper location to a more expensive location at a mailing cost $24. What would be the
monopolist profit?
$13844
$14896
$11516
$12672
Transcribed Image Text:Suppose that the monopolist can produce with total cost: TC = 20Q. 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 = 240-41, and Q₂ = 360 - 27½. Suppose that consumers can mail the product from cheaper location to a more expensive location at a mailing cost $24. What would be the monopolist profit? $13844 $14896 $11516 $12672
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