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Segmented markets with demand curves

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Reference no: EM132500558

This question is adapted from our textbook. A monopolist has two segmented markets with demand curves given by

p1 = 160 - q1

p2 = 130 - 1/2 q2

where p1 and p2 are the prices charged in each market segment, and q1 and q2 are the quantities sold. Its cost function is given by c(q) = 2q 2 , where q = q1 + q2. Find the monopolist's prot maximising prices p ∗ 1 , p ∗ 2 and outputs q ∗ 1 , q ∗ 2 sold in each market.

Reference no: EM132500558

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