Suppose that a firm produces good Y and has a monopoly status in two markets: in market A and in market B. The demand for good Y in market A is determined by the demand function: YA = 160 - 4PA. The demand for good Y in market B is determined by the demand function: YB = 160 - PB. Let's suppose that monopolist's cost function is C(y) = 20y + 1300.
a) Find the profit-maximazing output level that the firm should offer in market A and the price that the firm will charge per unit of Y in market A.
b) Find the profit-maximazing output level that the firm should offer in market B and the price that the firm will charge per unit of Y in market B.
c) Find the total profits of this monopolist.