A firm can sell in two separate markets whose demand schedules are given by the formulae: where P1 and P2 are the prices in the two markets and Q 2 and Q 2 are the respective quantities demanded....

A firm can sell in two separate markets whose demand schedules are given by the formulae: where P1 and P2 are the prices in the two markets and Q₂
and Q₂
are the respective quantities demanded. Marginal cost MC is given by the formula MC=2+0.5Q where Q is total output. What prices should the firm charge in each market in order to maximize profits? How much will then be sold in each market?