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A monopolist is deciding how to allocate output between two geographically separated markets
(East Coast and Midwest). Demand and marginal revenue for the two markets are:
P1 = 15 -Q1 ----> MR1 = 15 - 2Q1
P2 = 25 - 2Q2 ----> MR2 = 25 - 4Q2
The monopolists total cost is C = 5 - 3(Q1 - Q2 ). What are price, output, prots, marginal revenues, and deadweight loss if
(a) the monopolist can price discriminate?
(b) if the law prohibits charging deferent prices in the two regions?
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She could also use her entire budget to buy 3 uglifruits and 8 breadfruits per day. The price of uglifruits is 8 yen each. How much is Natalie's income per day?
Neal Rubin, while driving his car in Chicago, inadvertently blocked the path of a Yellow Cab Co. taxi driven by Robert Ball, causing the taxi to swerve and hit Rubin’s car. Angered by Rubin’s driving, Ball got out of his cab and hit Rubin on the head..
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