A monopolist is deciding how to allocate output between two markets that are separated geographically

Marketing Jan 13, 2021

A monopolist is deciding how to allocate output between two markets that are separated geographically. Demands for the two markets are P1 = 15 Q1 and P2 = 25 2Q2. The monopolist s TC is C = 5 + 3(Q1+Q2). What are the price, output, profits, and MR if:

a) The monopolist can price discriminate?

b) The law forbids (prohibits) charging different prices in the two regions?

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