Q3 (a). The inverse demand function for monopolist's product is given by P = 100 - 2Q and the cost function

C = 10 + 2Q find profit maximizing output level, price and profit of monopolist.

Q3 (b). The inverse demand function for monopolist's product is given by P = 100 - 2Q and the cost function

C = 10 + 2Q, if the monopolist succeeded in dividing the market into two segment (on the basis if elasticity of demand differences)

P₁ = 60 - 0.75Q₁

P₂ = 40 - 0.25Q₂

Find profit maximizing output level in each market, prices and profit level in each market.