When the monopolist serves both markets

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Reference no: EM131000913

Suppose that there are two markets, given by the following demand curves, q1(p1) and q2(p2); and a monopolist with cost function c(q1, q2).

(a) Set up the monopolist's profit maximizing problem if it charges a uniform price in both markets.

(b) Solve for the first-order conditions to characterize the optimal solution when the monopolist serves both markets.

Reference no: EM131000913

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