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Question: Consider a monopolist facing the following demand and cost curves.
P = 50-2QC = 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.
Pi =40-2.5Qi P2 = 90-10Q2
From the above equation calculate the following:
i) Total demand
ii) Marginal Revenue
iii) Marginal Cost
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