Question

I need step by step solution to the following this question asap .I have limited time so please do it quickly with detailed explanation

thanks in advance/Ha

a) A monopolist faces two totally separated markets with inverse demand p=100 – 9a and p=160 – 298 respectively. The monopolist has no fixed costs and a marginal cost given by mc=q . Find the profit maximizing total output and how much of it that is sold on market A and market B respectively if the monopoly uses third degree price discrimination. What prices will our monopolist charge in the two separate markets? (10p) 3

Answer 1

р. Тоо - 2А — ТА - 4, 2 100 2. MRA = 100 – 22. MRA= mc | |оо - 24, 22. Зоо - 62А - 22A 2А: 32.5 Р. 1 – 240 — Ru - P90 - ) 6o 24 - 20 мка A 160 — Ч 90 nes - М С — Г) 60 – Ч 1 2 3 ГЧ Хо — 1224 - 44 24. 34.28 11. + По 44 oked - 37.5 39. 28 – 2А2 22.5 , 96 39. 28 Price in Rise in market A= 100-37.5= 62.5 walk = 160 - 239. 28). Ч. 49