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.

---

Definitions:

Dyslexia

A common learning difficulty that can cause problems with reading, writing, and spelling.

Perceiving

The cognitive process of interpreting sensory information to understand the environment.

Sounding Out

The process of deciphering words by pronouncing their individual sounds, often used as a technique in learning to read.

Specific Learning Disorders

Difficulties in the acquisition and use of listening, speaking, reading, writing, reasoning, or mathematical abilities.