Question: c. Suppose MC2 , p , MC1 . For p in that range, what is the largest possible F 1 that the monopolist can charge

c. Suppose MC2 , p , MC1

. For p in that range, what is the largest possible F 1

that the monopolist can charge to type 1 consumers if she sets p 1 5 MC1 5 8? (Hint: Draw the graph with the two demand curves and then ask how much consumer surplus type 1 consumers could get by simply pretending to be type 2 consumers and accepting the package designed for type 2 consumers.)

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