Calculate the profit maximizing price and quantity

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A monopolist faces two distinct markets A and B for her product, and she is able to insure that resale is not possible. The demand curves in these markets are given by P = 20 - (1/4)QA and P = 14-(1/4)QB. The marginal cost is constant: MC = 4. There are no fixed costs.

(a) Calculate the profit maximizing price and quantity in each market.

(b) Compute the total profit made as a result of this discriminatory pricing.

Reference no: EM131072398

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