A monopolist sells to two consumer groups, wives and mothers.
Demand for wives: Q = 500 -1/2 P
Demand for mothers: Q = 750 -2P
MC = 20
Please find the profit-maximizing price/quantity combination in each market if the groups can be separated. Please show calculations. Thank you.© BrainMass Inc. brainmass.com October 9, 2019, 6:16 pm ad1c9bdddf
For profit maximization the price will be set at MC=MR in each market segment as we can separate the two markets.
This solution discusses profit maximization.