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A Monopolist Sells in Two Markets

Question 19

Multiple Choice

A monopolist sells in two markets.The demand curve for her product is given by p1 = 165 - 3x1 in the first market and p2 = 233 - 4x2 in the second market, where xi is the quantity sold in market i and pi is the price charged in market i.She has a constant marginal cost of production, c = 9, and no fixed costs.She can charge different prices in the two markets.What is the profit-maximizing combination of quantities for this monopolist?


A) x1 = 26 and x2 = 28.
B) x1 = 54 and x2 = 26.
C) x1 = 36 and x2 = 26.
D) x1 =52 and x2 = 30.
E) x1 = 46 and x2 = 38.

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