A Monopolist Sells in Two Markets

question 9

Multiple Choice

A monopolist sells in two markets. The demand curve for her product is given by p₁ = 141 - 3x₁ in the first market and p₂ = 115 - 2x₂ 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 = 3, 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 = 46 and x₂ = 30.
• B) x₁ = 51 and x₂ = 23.
• C) x₁ = 23 and x₂ = 28.
• D) x₁ = 33 and x₂ = 26.
• E) x₁ = 43 and x₂ = 38.

Understand the significance of involving necessary stakeholders during the decision implementation stage.

Recognize the importance of ethical considerations in decision making.

Understand the disadvantages and advantages of group decision making.

Identify and understand the steps of the decision-making process.