A monopoly sells in 2 separate markets. The demand functions are and with a constant variable cost of $10.
1. Suppose the monopoly were forced to charge 1 single price. What is the optimal price?
2. Suppose the monopoly can perfectly discriminate in both markets, calculate the profit for both market.
1. Should i combine both demand functions into one? So Q=240-3P?
2. For each market, should i set price = mc? so and ?
Thanks in advance