__. DayQui ice cream parlor is a monopoly. It sells to two types of customers: H...

 

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__. DayQui ice cream parlor is a monopoly. It sells to two types of customers: H and L. Consumer H enjoys ice cream more than consumer L. In particular, the net utility (measured in TL) of customer of type i (i is either H or L) is the consumer surplus from having q kg of ice cream minus the price p paid for it: U₁ = [v₁- (q/200)]q - p where VH = 0.28 and v₁ = 0.20. Assume that DayQui does not know which customer is which type and would like to offer two different ice cream serving sizes sold at different prices (pí, qн) and (p₁, q₁) intended for different customer types. a) Suppose that 10 kg ice cream is offered at the price of 1.5 TL and 16 kg ice cream is offered at the price of 3.2 TL. Will it work? Why or why not? b) Suppose that DayQui decides to offer a 10 kg portion for 1.5 TL and it is intended for the L type. What is the profit maximizing price for the 16 kg portion? c) Assume that DayQui's marginal cost is zero. If it were to serve only customers H, what optimal size portion would it choose and at what price? __. DayQui ice cream parlor is a monopoly. It sells to two types of customers: H and L. Consumer H enjoys ice cream more than consumer L. In particular, the net utility (measured in TL) of customer of type i (i is either H or L) is the consumer surplus from having q kg of ice cream minus the price p paid for it: U₁ = [v₁- (q/200)]q - p where VH = 0.28 and v₁ = 0.20. Assume that DayQui does not know which customer is which type and would like to offer two different ice cream serving sizes sold at different prices (pí, qн) and (p₁, q₁) intended for different customer types. a) Suppose that 10 kg ice cream is offered at the price of 1.5 TL and 16 kg ice cream is offered at the price of 3.2 TL. Will it work? Why or why not? b) Suppose that DayQui decides to offer a 10 kg portion for 1.5 TL and it is intended for the L type. What is the profit maximizing price for the 16 kg portion? c) Assume that DayQui's marginal cost is zero. If it were to serve only customers H, what optimal size portion would it choose and at what price?