Question: Question 2 Consider a monopolist with cost function given by C(Q) = 120 serving two markets with demand given bylg. (p ) = 400p andla,

Question 2 Consider a monopolist with cost function given by C(Q) = 120 serving two markets with demand given bylg. (p ) = 400p andla, (p.) = 3375p MC= AC = 2 a) Calculate the optimal uniform (linear) price and for the monopolist. MR - ER - 40Up Max = P= P.G. 91 = 40OR2 40Op MR= MC = 40 P (QI) . QI = CCO) b) Calculate the optimal 3rd degree prices and assume arbitrage is not possible

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