Assume the following for price discriminating monopolist aimed at maximizing profit. Total demand for the product of the monopolist is Q = 50-5P (P = 100-2Q) · Demand in Market one is Q1= 32-0.4P1(P1= 80-2.5Q1) · Demand in Market two is Q2= 18-0.1P2(P2= 180-10Q2) · Cost function is C = 50+40Q (where Q = Q1+ Q2) a. Find equilibrium quantities (Q1and Q2), b. Find equilibrium prices (P1and P2), c. Calculate profit (π), d. Calculate and Interpret elasticities (ε1 and ε2)

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Assume the following for price discriminating monopolist
aimed at maximizing profit. Total demand for the product of the
monopolist is Q = 50-5P (P = 100-2Q)

·        Demand in Market one is Q1= 32-0.4P1(P1= 80-2.5Q1)

·        Demand in Market two is Q2= 18-0.1P2(P2= 180-10Q2)

·        Cost function is C = 50+40Q (where Q = Q1+ Q2)

a.      Find equilibrium quantities (Q1and Q2),

b.     Find equilibrium prices (P1and P2),

c.      Calculate profit (π),

d.     Calculate and Interpret elasticities (ε1 and ε2)

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