Question: 4. (15 marks) Consider a monopolist whose total cost function is TC = (13 - 30C:z + 301a, whose inverse demand function is P =

4. (15 marks) Consider a monopolist whose total cost function is TC = (13 - 30C:z + 301a, whose inverse demand function is P = 1501 - 300 where Q is output and P is price. a. If the rm were to act as a single price monopolist, how much will it produce? What price it will charge? How large will be its prot? Calculate the nn's Lerner Index of monopoly power. b. Now suppose this firm can practice perfect price discrimination. How much does it produce? If the rm produces Q = 25, what is the lowest price it charges for any unit and what are its prots

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