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Suppose a monopolist can sell to two different customers with demand curves: Q1 = 24-P1; Q2 = 24- 2P2; The monopolist has a constant marginal cost of C = 6.
a. Suppose the monopolist can charge different prices across customers. Calculate the profitmaximising price-quantity pair for each customer.
b. Now suppose regulation forces the monopolist to charge the same price to both customers. Calculate the profit-maximising price and the quantity sold to each customer.
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