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A firm is deciding how to allocate its output between two geographically separated markets (1 and 2). Demand equations for the two markets are:
D1: P1 = 16 - Q1
D2: P2 = 24 - 2Q2
The monopolist's total cost is C = 10 + 4(Q1 + Q2).
(A) What are the marginal revenue functions for these two markets (MR1 and MR2)?
(B) What are the marginal costs for the two markets (MC1 and MC2)?
(C) What are the outputs for the two markets (Q1 and Q2)?
(D) What are the prices for the two markets (P1 and P2)?
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