13. A monopolist is trying to decide how to allocate output between two markets (Market1 and market 2). The demand curve for the two markets is given by: P1 = 15-q1 and P2= 25-2q2. The cost function of the monopolist is C= 5+3q1+q2. Calculate the price output and profit and deadweight loss

a. If the monopolist can discriminate across two markets.

b. If the law prohibits the monopolist from discriminating between the two markets.

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Retselisitsoe PokothoaneLv10

28 Sep 2019

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A monopolist is deciding how to allocate output between two geographically separated markets

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