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A Monopolist Sells in Two Markets

question 21

Multiple Choice

A monopolist sells in two markets. The demand curve for her product is given by p1 = 165 - 3x1 in the first market and p2 = 233 - 4x2 in the second market, where xi is the quantity sold in market i and pi is the price charged in market i. She has a constant marginal cost of production, c = 9, and no fixed costs. She can charge different prices in the two markets. What is the profit-maximizing combination of quantities for this monopolist?


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