price discriminate

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A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and Midwest). Demand and marginal revenue for the two markets are:

P1 = 15 – Q1 MR1 = 15 – 2Q1

P2 = 25 – 2Q2 MR2 = 25 – 4Q2

The monopolist’s total cost is C = 5 + 3(Q1 + Q2 ). What are price, output, profits, marginal revenues, and deadweight loss (i) if the monopolist can price discriminate? (ii) if the law prohibits charging different prices in the two regions? business portfolios company-wide strategic planning

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