Question: A monopolist has the long run cost function C(Q) = 502. Inverse market demand is PD (Q) = 360-2Q. The firm practices first degree

A monopolist has the long run cost function C(Q) = 502. Inverse

A monopolist has the long run cost function C(Q) = 502. Inverse market demand is PD (Q) = 360-2Q. The firm practices first degree (perfect) price discrimination. a. Find the monopolist's profit maximizing quantity. Describe pricing. b. Suppose the government imposes a price ceiling of 340 in this market. Find the monopolist's profit maxinizing quantity. Describe pricing.

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