Question 5 Consider a firm that is a monopolist and sells in two distinct markets. The demand curves in the two markets are: P1 = 160 -8Q1 P2 = 80-2Q2 The marginal cost curves is 5+ Q where Q is the firms entire output destined for either market. What pricing policy would you suggest? How many units of output should it sell in each market?

Answer rating: 100% (QA)

To determine the optimal pricing policy and quantity of output for the monopolist firm selling in tw... View the full answer