Question: answer questions a b c Consider a Monopolist that is facing the market demand function Q3 = 800 (1 / 4);) for type A consumers

answer questions a b c

answer questions a b c Consider a Monopolist that is facing the

Consider a Monopolist that is facing the market demand function Q3 = 800 (1 / 4);) for type A consumers and 62:, = 500 (1/3)p for type B consumers, where Q] and 62;, is total quantity demanded from each group of consumers when the monopolist charges a constant price of 3) dollars for every unit of output sold. Th. monopolist has the cost function C(y) = 103;, which is the minimum level of costs for producing 3; units of output. a) In a diagram with dollars on the vertical axis, plot the demand functions for both Type A and Type B consumers. Write down the monopolist's marginal cost function and plot in the same graph. b) Assume that the monopolist can practice First-Degree Price Discrimination. Find the monopolist's prots for type A consumers and her prots from type B consumers. c) Suppose that the monopolist can practice Second-Degree Price discrimination only. Prove that the First-Degree Price discrimination combination offer from part b is not compatible with self-selection

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