Question: A monopolist has cost functions: MC = 2Q + 5, FC = 1000. Demand function for 2 groups of customer are: Group 1: P1 =

A monopolist has cost functions: MC = 2Q + 5, FC = 1000. Demand function for 2 groups of customer are: Group 1: P1 = 157 - 2Q1 Group 2: P2 = 130 - Q2 Optimal quantity of the monopolist is Q = 40,2 a. Total cost of the monopolist at the optimal quantity is? b. What would be the quantity sold in each market? c. What would be the price sold in each market? d. The monopolist's profit when applying third-degree price discrimination is? e. If the government prohibits charging different prices for the two markets, what is the common price should the monopolist charged? f. The monopolist's profit when it cannot price discriminate is? g. When the monopolist can apply third-degree price discrimination, which group would benefit from this policy

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