A monopoly firm wishes to supply two different markets, 1 and 2, with the corresponding demand functions given as: P1 = 500 – Q1 (Market 1) P2 = 300 – Q2 (Market 2) P1 and P2 represent the prices charged in markets 1 and 2, respectively, and Q1 and Q2 are quantities sold in markets 1 and 2, respectively. The cost function is given by: C = 50,000 – 100Q Find: i. The profit maximizing output for the monopolist ii. Allocation of output between the two markets iii. The price charged in each of the two markets 4 iv. The total or maximum profit

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A monopoly firm wishes to supply two different markets, 1 and 2, with the
corresponding demand functions given as:
P1 = 500 – Q1 (Market 1)
P2 = 300 – Q2 (Market 2)
P1 and P2 represent the prices charged in markets 1 and 2, respectively, and Q1
and Q2 are quantities sold in markets 1 and 2, respectively.
The cost function is given by: C = 50,000 – 100Q
Find:
i. The profit maximizing output for the monopolist
ii. Allocation of output between the two markets
iii. The price charged in each of the two markets
iv. The total or maximum profit

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