... and the U.K is not possible (different DVD formats) and the common constant MC = m = $1 – Warner acts as a traditional monopoly in each country U.S market: MRA=1, QA=5.8, pA=$29 U.K market: MRB=1, ... derivatives equal to zero • American Market: ∂π(QA, QB) /∂QA= – ∂π(QA, QB) /∂QA= dRA(QA)/dQA – m = – The monopoly sets MR = MC in this market, so MRA = dRA(QA)/dQA = m • British Market: ∂π(QA, QB) /∂QB= ... Different Consumers – Two-part pricing is more complex if consumers have different demand curves – Having two different demands implies consumers have different consumer surpluses Two-part pricing would...