Question

a monopolist faces two demand function p1=12-q1 and P2 = 20-3q suppose his total cost function is c= 3+2(q1 +q2). determine the prices the monopolist will change in two market if his objective is to maximize profit​

Answer 1

Answer:

he will get profit

Explanation:

p1=12-q1

P2 = 20-3q

c= 3+2(q1 +q2).

sum is eqal to profit

so,a=11,b=17,c=3(1)+3(2)

11+17+9=37

Answer 2

Explanation:

. Suppose the demand function a monopolist faces in market 1 and market 2 are q₁ = 55 −p₁ and q₂ = 70-

2p2, respectively. Furthermore, assume that its cost function is TC = 5Q + 20. With this information at

hand let us:

a. Determine q1,q2, P1, and p2 that maximize the profit of the monopolist?

b. Calculate the profit of the monopolist from selling its product in the two markets?

c. Determine the price elasticities of demand in the two markets?

d. Show the outputs and prices of the two markets using the back-to-back diagram?