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Q. A monopolistic firm control in 2 separate markets. No deal is achievable between market a as well as market b. The firm has considered the demand functions for each market as given below:
Market A P = 15- QMarket B P = 11- Q
The corporation estimates its entire cost function to be TC= 4Q. Calculate:
A. Quantity, whole revenue and profit when company maximizes its earnings and charges the same price in both markets.
B. Quantity, whole revenue and profit when company charges different price in each market and exploits its total profit.
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