Suppose a discriminating monopolist is selling a product in four separate markets in which demand functions are: Q 1 = 450 – P 1 ; Q 2 = 200 – 0.5 P 2 ; Q 3 = 150 – 0.25P 3 and Q 4 = 80 – 0.4P 4 Cost...

Suppose a discriminating monopolist is selling a product in four separate markets in which demand functions are:

Q₁ = 450 – P₁; Q₂ = 200 – 0.5 P₂; Q₃ = 150 – 0.25P₃ and Q₄ = 80 – 0.4P₄

Cost function is TC = 95,000 – 100Q.

a. As an economic adviser, determine the Prices to be charged in the three markets and amount of output to be sold in each market so that total profits can be maximized.

b.Calculate the total profit to be made from the strategy of price discrimination and clearly explain how this strategy has aided this monopolist.