A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and West Coast) Demand and marginal revenue for the two markets are East Coast P 1 15 Q 1 West Coast P 2 25 2Q 2 The monopolist's total cost is C 5 3(Q 1 Q 2 ) What are prices, outputs, and profit if the monopolist can price discriminate

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Question: A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and West Coast). Demand and marginal revenue for the two

A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and West Coast). Demand and marginal revenue for the two markets are:

East Coast: P₁ = 15 -Q₁

West Coast: P₂ = 25 - 2Q₂

The monopolist's total cost is C = 5 + 3(Q₁ + Q₂). What are prices, outputs, and profit if the monopolist can price discriminate?

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