ppose a monopolist produces good x and serves two markets. The goods can be transported  between the two markets at no cost, so the firm must charge uniform prices in both markets. The  demand schedule in the first market is P1 = 200 - 2Q1, where P1 is the price of the good and Q1 is  the amount sold in the market. In the second market, the demand is P2 = 140 - Q2, where P2 is the  price and Q2 the quantity. The firm’s overall marginal cost is MC = 90 + Q1 + Q2. What price  should the firm charg

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Suppose a monopolist produces good x and serves two markets. The goods can be transported 
between the two markets at no cost, so the firm must charge uniform prices in both markets. The 
demand schedule in the first market is P1 = 200 - 2Q1, where P1 is the price of the good and Q1 is 
the amount sold in the market. In the second market, the demand is P2 = 140 - Q2, where P2 is the 
price and Q2 the quantity. The firm’s overall marginal cost is MC = 90 + Q1 + Q2. What price 
should the firm charge?

 

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