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Business, 27.11.2019 01:31 deadlydemon0500
Amonopolist sells in two states. the demand function in state 1 and 2 respectively is q1(p1)=50 – p1 and q2(p2)=90-1.5p2. the monopolist produces at a constant marginal cost of 10. if a government regulation prevents the monopolist from charging different prices in the two states, then the profit maximizing price will be p*= (hint: the monopoly serves both markets if the optimal price is below 50; assume that p* is at most 50 and solve for the monopoly that maximizes profits with the aggregate demand; confirm that the solution is below 50).
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Amonopolist sells in two states. the demand function in state 1 and 2 respectively is q1(p1)=50 – p1...
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