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A monopolist sells its product to two countries, labeled 1 and 2. The inverse demand curves in these countries are p, = 100 – Q, and p, = 120 – 3Q2, respectively. The monopolist's cost function is C(Q) = 0², where Q = Q1 + Q2- 5) Find the aggregate demand function and the associated inverse demand function for p < 100. Write down the monopolist's profit function and proceed to find its profit-maximizing output and profit. Calculate the equilibrium price the monopolist would charge in each country. Also calculate the output it would supply to each country.

A monopolist sells its product to two countries, labeled 1 and 2. The inverse demand curves in these countries are p, = 100 – Q, and p, = 120 – 3Q2, respectively. The monopolist's cost function is C(Q) = 0², where Q = Q1 + Q2- 5) Find the aggregate demand function and the associated inverse demand function for p < 100. Write down the monopolist's profit function and proceed to find its profit-maximizing output and profit. Calculate the equilibrium price the monopolist would charge in each country. Also calculate the output it would supply to each country.

Microeconomic Theory
Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.5P
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5) A monopolist sells its product to two countries, labeled 1 and 2. The inverse demand curves in these countries are p1 = 100 – Q, and p2 = 120 – 3Q2. respectively. The monopolist's cost function is C(Q) =02, where Q = Q1 + Q2- a) Find the aggregate demand function and the associated inverse demand function for p < 100. Write down the monopolist's profit function and proceed to find its profit-maximizing output and profit. Calculate the equilibrium price the monopolist would charge in each country. Also calculate the output it would supply to each country. b) c)
Transcribed Image Text:5) A monopolist sells its product to two countries, labeled 1 and 2. The inverse demand curves in these countries are p1 = 100 – Q, and p2 = 120 – 3Q2. respectively. The monopolist's cost function is C(Q) =02, where Q = Q1 + Q2- a) Find the aggregate demand function and the associated inverse demand function for p < 100. Write down the monopolist's profit function and proceed to find its profit-maximizing output and profit. Calculate the equilibrium price the monopolist would charge in each country. Also calculate the output it would supply to each country. b) c)
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