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Question: The discriminating monopolist

Question:The discriminating monopolist

shenny 12
student
April 27 2008
0

Question:   Consider a firm that sells in two separate markets. The inverse demand functions in the two market are  p1= a1-b1.q1    

                     and   p2 = a2 -b2.q2      and the total production   c(q) = a. (q1+q2)

           a) Find the optimal (profit maximising) values of q1 and q2

           b) State the sufficient second order conditions for these optimal values to maximise profits.

           c) Explain the conditions the parameters must satisfy for the second order conditions to be satified.

Does anyone know how to do this? Pls help me 2 solve it....
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