Question: A monopolist with cost function c(Q) = 3Q2 faces a market demand function QA (P) = 200 - 2PA in market A and QB (P)

  1. A monopolist with cost function c(Q) = 3Q2 faces a market demand function QA (P) = 200 - 2PA in market A and QB (P) = 120 - PB in market B. Suppose the monopolist engages in 3rd degree price discrimination. Calculate the monopolist's profit maximizing prices and quantities for each market.

  1. Suppose the monopolist in Question 24 must charge a uniform price to each of the consumer types. Calculate the monopolist's profit maximizing price and the corresponding market quantities under uniform pricing.

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