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A Monopolist is deciding how to allocate output between two markets. The two markets are separated geographically. Demand and marginal revenue for the two markets are given by:
P1 = 50- Q1
P2 = 25 - 0.5Q2
The monopolist's can serve both markets at a constant marginal cost of $10.00
What are price, output, profits marginal revenue and deadweight loss (in each market) if the monopolist can price discriminate?
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