ISI 2010 ME2

[The Villain]

2(a) A monopolist can sell his output in two geographically separated markets
A and B. The total cost function is TC = 5 + 3(QA + QB) where QA
and QB are quantities sold in markets A and B respectively. The demand
functions for the two markets are, respectively, PA = 15 − QA and PB =
25 − 2QB. Calculate the firm’s price, output, profit and the deadweight
loss to the society if it can get involved in price discrimination.


I have got the answers to price,output and all.How to find dead weight loss in this question??

[Economics student]

Ron, for price and output, we need to just equate the MC to individual MRs right?

[The Villain]

Yeah put MR1=MC1 and MR2=MC2 and solve
or you can make profit function and solve too...
please help me with the dead weight loss part...

[mrittik]

for the dead weight loss you first define the Comp price and Qnty in 2 diff markets. then just area of triangle = 0.5*(Pmon-Pc)*(Qc-Qmon)