Answer to Question #71192 in Economics of Enterprise for Patrick Mayaka

Question #71192
A monopoly price discriminates between two markets: Market 1 P1 = 500 - Q1 Market 2 P2 = 300 - Q2 Total Cost = 15000 + 100Q where Q = Q1 + Q2 Required: Determine the quantity and price of each market and the total profit.
1
Expert's answer
2017-11-22T15:06:07-0500
TC=15000+100(Q1+Q2)
MC1=100
MC2=100
TR1=P*Q1=500Q1-Q1^2
TR2=P*Q2=300Q2-Q2^2
MC1=500-2Q1
MC2=300-2Q2
100=500-2Q1
2Q1=400
Q1=200
100=300-2Q2
2Q2=200
Q2=100
P1=500-200=300
P2=300-100=200

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