A Monopolist Sells in Two Markets

question 3

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.

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