Suppose that the monopolist can produce with total cost: TC = 20Q. Assume that the monopolist sells its goods in two different markets separated by some distance. The demand curves in the first market and the second market are given by Q, = 240-4P, and Q2 = 360- 2P,. Suppose that consumers can mail the product from cheaper location to a more expensive location at a mailing cost $24. What would be the monopolist profit? %3D
Suppose that the monopolist can produce with total cost: TC = 20Q. Assume that the monopolist sells its goods in two different markets separated by some distance. The demand curves in the first market and the second market are given by Q, = 240-4P, and Q2 = 360- 2P,. Suppose that consumers can mail the product from cheaper location to a more expensive location at a mailing cost $24. What would be the monopolist profit? %3D
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.9P
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