The monopolist sells in two geographically divided markets

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A monopolist sells in two geographically divided markets, the East and the West. Marginal cost is constant at $50 in both markets. Demand and marginal revenue in each market are as follows:

QE = 900 - 2PE

MRE = 450 - QE

QW = 700 - PW

MRW = 700 - 2QW

a. Find the profit-maximizing price and quantity in each market.

b. In which market is demand more elastic? 

Reference no: EM13394599

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