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Different prices to emerge in the two markets

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Reference no: EM131100610

A pharmaceutical firm has just received a patent on a drug.  It can sell in two markets.  The firm has estimated that the inverse demand curve in the first market is

p1=25-.0001q1

and the inverse demand in the second market is

p2=20-.0002q2

If the Marginal cost of the drug is $5, how many would the firm sell in each market? What prices would it set? What condition must hold for different prices to emerge in the two markets?

Reference no: EM131100610

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