A Monopolist Sells in Two Markets

question 27

Multiple Choice

A monopolist sells in two markets. The demand curve for her product is given by p₁ = 122 - 2x₁ in the first market and p₂ = 306 - 5x₂ in the second market, where x_i is the quantity sold in market i and p_i is the price charged in market i. She has a constant marginal cost of production, c = 6, and no fixed costs. She can charge different prices in the two markets. What is the profit-maximizing combination of quantities for this monopolist?

• A) x₁ = 58 and x₂ = 32.
• B) x₁ = 29 and x₂ = 30.
• C) x₁ = 59 and x₂ = 29.
• D) x₁ = 39 and x₂ = 28.
• E) x₁ = 49 and x₂ = 40.

Identify the liquidity of different financial accounts and understand their impact on personal finance management.

Calculate the rate of return on savings and understand the effects of interest rates on savings and loans.

Reconcile bank statements and checkbook balances, and understand the concept of outstanding checks.

Understand the impact of tax rates on savings and investments and calculate the after-tax rate of return.

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Definitions:

Aggressive

Characterized by or displaying assertive, bold, and sometimes forceful behavior or attitudes.

Impulsive

Acting on or influenced by sudden desires or emotions without careful thought or consideration of the consequences.

Money-Hungry

Describes a strong or excessive desire for wealth, often at the expense of other values or ethics.

Rude

Displaying a lack of respect or consideration for others through impolite actions or words.