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Market in order to maximize profits

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Reference no: EM132401080

Suppose you are employed at a monopolistic company as a research (pricing) economist and you are deriving the behavior of two markets based on demand curves given by:

D1(p1)=80-p1

D2(p2)=80-2p2

Assume that the marginal cost is constant at $5 a unit.

(a) If it can price discriminate, what price should it charge each market in order to maximize profits?

(b) If it can't price discriminate, what price should it charge?

Reference no: EM132401080

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