The firm is able to discriminate between the two markets, Business Economics

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The firm is able to discriminate between the two markets

Economics - Price Discrimination

A monopoly sells in two markets.

The inverse demand curve in market 1 is: P1 = 100 – q1

The inverse demand curve in market 2 is: P2 = 200 – q2

Total costs are: TC = 20Q

The firm is able to discriminate between the two markets.

a) What quantities are sold in the two markets?

b) What price is charged in each market?

c) What is the profit of the firm?

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Business Economics: The firm is able to discriminate between the two markets

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Business Economics: The firm is able to discriminate between the two markets

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