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Question: A monopoly firm faces two markets where the inverse demand curves are  Market A: P_A = 140 - 2.75...

Show transcribed image text A monopoly firm faces two markets where the inverse demand curves are Market A: P_A = 140 – 2.75Q_A. Market B: P_B = 120 – Q_B. The firm operates a single plant where total cost is C = 20Q + 0.25 Q^2, and marginal cost is m = 20 + 0.5Q. Suppose the firm sets a single price for both markets. Using the information above, the profit maximizing price is $86.18 and the profit maximizing quantity is 53.37 units. Given this information, you determine that the firm will earn a profit of $ 2819.95. (Round your response to two decimal places) Now suppose the firm is able to engage in group price discrimination. To maximize profits, the firm will produce units for market A and charge customers in market A a price of $ per unit. And it will produce units for market B and charge customers in market B a price of $ per unit. (Round your responds to two decimal places.)

A monopoly firm faces two markets where the inverse demand curves are Market A: P_A = 140 – 2.75Q_A. Market B: P_B = 120 – Q_B. The firm operates a single plant where total cost is C = 20Q + 0.25 Q^2, and marginal cost is m = 20 + 0.5Q. Suppose the firm sets a single price for both markets. Using the information above, the profit maximizing price is $86.18 and the profit maximizing quantity is 53.37 units. Given this information, you determine that the firm will earn a profit of $ 2819.95. (Round your response to two decimal places) Now suppose the firm is able to engage in group price discrimination. To maximize profits, the firm will produce units for market A and charge customers in market A a price of $ per unit. And it will produce units for market B and charge customers in market B a price of $ per unit. (Round your responds to two decimal places.)