Perfectly price discriminate on continuous level

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A market is made up of two consumers. The first has a demand P(1) = 1200 – 3q and the other has demand P(2) = 1200 – 6q. There is one firm in the market acting like a monopolist with costs = Q^2 + 90,000

Assume the firm can perfectly price discriminate on a continuous level. Show that q(1) = 200, q(2) = 100, and that the firm’s profit = 90,000

Reference no: EM131097151

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