2. Consider a monopolist who has a cost function of c(Q) = 5Q. This monopolist faces two consumers, the first having demand q₁(P₁) = 80 - 2P₁ and the second having demand q2 (P₂) = 50-P₂- a) Calculate the profit-maximizing price and then the optimal quantity sold to each consumer under uniform pricing, i.e. the monopolist charges the same price for both consumers. What are the monopolist's profits? b) Suppose now that the monopolist can engage in third degree price discrimination. Find the monopolists profit maximizing prices for consumers 1 and 2 (they should be different), and calculate the monopolist's profits. How do they compare to the profits in part (a)?

solve question 1st onlys

Eyeglasslux is a single-price monopolist in the eye-glass frame market. It faces a Market demand given by Q=196-2P. Its only cost is a Marginal Cost of MC=Q. What is the (absolute) elasticity of demand at the profit maximizing price?

4. Consider a monopolist with cost funetion c(q) = 20g, who is facing two con- sumers. The consumers' demand functions are given by 91 = 100 - p 92 = 300 – 3p. (a) Suppose the monopolist does not price discriminate. Find the monopolist's optimal pricing strategy, the resulting profit, and Lerner Index. (b) Suppose the monopolist can engage in third degree price discrimination. Find the monopolist's optimal pricing strategy and the resulting profit. Compare the profit with that found in part (a), and give an intuitive ex- planation. (c) Now, suppose the monopolist can produce the good at zero cost. That is clq) = 0. Find the monopolist's optimal second degree price discrimination strategy.

A monopolist with cost function C(q) = ;q? faces 2 consumers with the following demands: p(q1) = 10 - q1 and p(q2) = 20 – 2q2. Determine prices, quantities to be produced and sold and the monopolist's profits in the following cases: (a) The good can be resold at zero cost among consumers and it is technologically impossible to sell it in bundles of more than 1 unit. b) There is resale at zero cost and bundling in packages of arbitrary size. c) Resale is possible at a cost of "t" per unit. d) The good is a personal and non-transferable service. e) Repeat the above analysis, but this time assuming that costs are C(q) = q with q < 8.

Suppose a monopolist's total cost function is given by c = 0.004q +30q + 2000, and the revenue function is r = q(1200 - 6q), where c is measured in dollars and q is measured in tonnes per week. a. Determine marginal cost when g = 50. b. Express profit (n) as a function of q. Determine the profit-maximising level of output and the corresponding maximum profit. Justify your answers. C.

Q1. Consider a monopolist which produces two different products, each having the following demand functions: - P₁, 91 = 14- 1 92 = 24- P2. where 9₁ and 92 represent the output levels of product 1 and product 2 and p₁ and p2 represent their prices. The monopolist's joint cost function is given as C (91, 92) = 91 +59192 +92². Write out the monopolist's profit function.

If a monopolist faces a demand p(q) = 130-3q and costs c(q) = 2q^2, answer: a) What is the quantity this monopolist would sell? b) What is the price they would charge?

All 20 consumers are alike and each has a demand curve for a monopolist's product of p=15 -3q. The cost of production C(Q) =2Q. Let the monopolist charge a price of $PM for qM unit purchased. Find the menu prices that maximize profits? (The buyer pays menu price PM for quantity qM) What is the maximum profit the monopolist can earn in this market? (pi)?

On the market of good Y there are 50 identical consumers. Each consumer has a demand function q=300-2pGood Y is produced by a monopolist, which is operating with a constant marginal cost of 50 and a fixed cost of 2000. Suppose the monopolist implements a two-part tariff pricing strategy. Calculate the maximum profit