A discriminatory monopolist is faced with the following output cost function Q1=24-0.2p1, Q2=10-0.5p2, C=32+40Q where Q= Q1+Q2 calculate the Price and output level that will maximize his profit in each market

Consider a monopolistic market with demand function: P = 36 – 0.5Q The monopolist’s marginal cost (MC) and total cost (TC) function are: MC = $2        TC = 4 + 2Q How much total economic profit does the monopolist earn?

A monopolist has discovered that the inverse demand function of a person with income Y for the monopolist’s product is P = 0.002Y-Q where P is the price, Y the income, and Q is the output. The monopolist can observe the incomes of its consumers and hence vary its price accordingly. The monopolist has a total cost function C(Q) = 100Q. A. Calculate the profit maximising price as a function of the consumer’s income Y carefully explaining all the steps in the derivation of the formula. B. A monopolist has a constant marginal cost of £2 per unit and no fixed costs. He faces two separate markets in the United States and in the UK. The goods sold in one market are never resold in the other. He sets one price P1 for the US market and another price P2 for the UK market (both measured in £). The demand in the United States is given by Q1=7,000-700P1 and the demand in the UK is given by Q2=1,200-200P1. Calculate the profit maximising output produced and price charged in each country by the…

If the monopolist shown in the following figure could practice first-degree price discrimination, the producer surplus would be: Price (dollars) 50 40 30 20 10 0 $450.00 $1,200.00 $0.00 $900.00 $225.00 30 50 60 MR 100 MC Quantity