Microeconomics Assignment

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    5. Suppose that a monopolist faces two markets with demand curves given by D1(p1) = 100 p1 and D2(p2) = 100 2p2. Assume that the monopolist’s marginal cost is constant at $20 a unit. If it can price discriminate:

    (a) What price should it charge in each market in order to maximize profits?

    (b) If it can’t price discriminate, then what price should it charge?

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