Problem: A monopolist can sell in two markets defined by: QA = 5500- lOOPA and QB = 18000 - 400PB
1) If the monopolist charges different prices in each market, what is this practice called?
2) It costs the firm $20,000 even if it produces nothing, and $15 for every unit above that. Find the price and quantity sold in each market. WHat is the firm profit?
3) Now the firn has access a new technology with no fixed costs but increasing marginal cost MC = .1Q. find the price and quantity sold in each market. How much will the firm produce with each technology? what is the firm's profit?