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    Monopolist

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    Marginal cost is constant at $50 in both east and west markets. Demand and Marginal revenue are the same:
    Qe=900-2Pe
    MRe=450-Qe
    Qw=700-Pw
    MRw=700-2Qw
    a. What is the profit maximum price and quantity for each market
    b. Which market is more elastic

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    https://brainmass.com/economics/demand-supply/monopolist-marginal-costs-334723

    Solution Preview

    Profit maximization rule MR = MC

    first we look at market e

    MR = 450-Qe = 50 = MC, Qe = 400.

    Qe = 900-2Pe = 400, so Pe = 250

    Now we look at ...

    Solution Summary

    Monopolist of marginal costs are examined for east and west markets.

    $2.19