Question-3 (Monopolist Behavior) demand curves given by Suppose a monopolist faces two markets with = Di(pi) 200 pi D2(p2) = 100-2p2 Assume that the monopolist's cost function is c(y) = y² 1. What is the optimal prices for the monopolist if it can charge different prices in these markets? 2. What is the optimal price if the monopolist must charge the same price in each market? 3. How much total consumers' surplus changes between the two separate prices and the same price cases?

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Question-3 (Monopolist Behavior)
demand curves given by
Suppose a monopolist faces two markets with
=
Di(pi) 200 pi
D2(p2) = 100-2p2
Assume that the monopolist's cost function is c(y) = y²
1. What is the optimal prices for the monopolist if it can charge different prices in these markets?
2. What is the optimal price if the monopolist must charge the same price in each market?
3. How much total consumers' surplus changes between the two separate prices and the same
price cases?
Transcribed Image Text:Question-3 (Monopolist Behavior) demand curves given by Suppose a monopolist faces two markets with = Di(pi) 200 pi D2(p2) = 100-2p2 Assume that the monopolist's cost function is c(y) = y² 1. What is the optimal prices for the monopolist if it can charge different prices in these markets? 2. What is the optimal price if the monopolist must charge the same price in each market? 3. How much total consumers' surplus changes between the two separate prices and the same price cases?
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