Find the profit-maximazing output level

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Suppose that a firm produces good Y and has a monopoly status in two markets: in market A and in market B. The demand for good Y in market A is determined by the demand function: YA = 160 - 4PA. The demand for good Y in market B is determined by the demand function: YB = 160 - PB. Let's suppose that monopolist's cost function is C(y) = 20y + 1300.

a) Find the profit-maximazing output level that the firm should offer in market A and the price that the firm will charge per unit of Y in market A.

b) Find the profit-maximazing output level that the firm should offer in market B and the price that the firm will charge per unit of Y in market B.

c) Find the total profits of this monopolist.

Reference no: EM131207262

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