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Consider a monopolist facing the following demand and cost curves


Date: 30 Jan 2013   Posted By: Dharmendra Kumar Singh     Group: Education    Category: Exam Questions   

Consider a monopolist facing the following demand and cost curves.
P = 50 - 2Q C = 25+10Q

(Hint: Total demand at any point P will be the summation of two quantities)
Suppose the firm is able to separate its customers in two distinct markets with the following demand functions.

P1 = 40 - 2.5Q1 P2 = 90 - 10Q2

From the above equation calculate the following:


i) Total demand
ii) Marginal Revenue
iii) Marginal Cost


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