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Demand and the marginal revenue curves

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Reference no: EM131278001

Consider a monopolistic firm selling the same product in two separate markets, A and B, which have different demand curves. The demand in market A is defined by PA = 18 - 2QA for positive prices and quantities (i.e., for all PA, QA> 0) and the demand in market B is defined by PB = 9 - QB   for positive prices and quantities (i.e., for all PB, QB> 0)

The marginal cost of this firm is equal to its average total cost and is constant at $4 per unit produced. Set up diagrams that shows the demand and the marginal revenue curves of this firm, as well as the quantities and prices it charges in each market, and also calculate the firm's total profit from selling in the two markets.

Reference no: EM131278001

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