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Robert · Accepted Answer

A monopolist produces two related goods x and y. 
demand for X is X=-4Px+Py+12 
demand for Y is Y=2Px-3Py+18. the cost of cost of producing these is 
TC = 8+1.5X+1.8Y 
-find the inverse demand for each good. 
Answer: 
Inverse demand functions for good X: 
4Px = 12+Py-X, implies Px = 3 + (Py/4) –(X/4) …………. (1) 
Inverse demand functions for good Y: 
3Py = 18+2Px-Y, implies Py = 6 + (2/3)Px – (1/3)Y  …………. (2) 
-build the monopolist total revenue as a function of X and Y (not as a function of prices) 
Answer: 
Simplifying (1) and (2),

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