Question Six
A Mobile Telephone company has isolated three distinct demands for its service;
Weekdays:
2-90-0.5P 0-35-0.25
Holidays:
Q-30-0.2P TC-25+200 where 9-0 +9, +0,
Nights:
Show that as a discriminating monopolist this company will maximize profits by
lowest, by finding: a) The profit maximizing
charging the highest price in the market where the price elasticity jej of demand is level of output
b) The profit maximizing level price
e) The price elasticity of demand in each market
(15 marks)

Answer rating: 100% (QA)

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