A monopoly with cost function c(q)=100q serves two markets. The market demand function for market A is qa(P)=1000-4p and that for market B is qb(P)=500-p.

a)suppose the monopoly cannot price discriminate and must charge the same price in both markets. find the profit maximizing price, quantity sold in each market and the monopoly's profit.

b)suppose the monoply can chagre different prices in each market. find the profit maximising price and quantity sold in each market and the monopolys profit.

Question

A monopoly with cost function c(q)=100q serves two markets. The market demand function for market A is qa(P)=1000-4p and that for market B is qb(P)=500-p. 

a)suppose the monopoly cannot price discriminate and must charge the same price in both markets. find the profit maximizing price, quantity sold in each market and the monopoly's profit. 

b)suppose the monoply can chagre different prices in each market. find the profit maximising price and quantity sold in each market and the monopolys profit.