What is the economic profit in market

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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 - 2*PE

MRE = 450 - QE

QW = 700 - PW

MRW= 700 - 2*QW

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

What is the economic profit in each market?

In which market is demand more elastic?

Reference no: EM133131750

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