Question: Suppose consumers receive utility ui=isp from purchasing a product from a monopoly. i draws uniformly from [0,1] Write down the demand function P(q,s). The equation

Suppose consumers receive utility ui=isp from purchasing a product from a

Suppose consumers receive utility ui=isp from purchasing a product from a monopoly. i draws uniformly from [0,1] Write down the demand function P(q,s). The equation should not contain . b Graphically illustrate the impact of an increase in s in a p-q diagram. c Graphically illustrate why the monopolist underprovides quality. d Now assume the utility function is ui=i+(1i)sp. Repeat part b and c. Suppose consumers receive utility ui=isp from purchasing a product from a monopoly. i draws uniformly from [0,1] Write down the demand function P(q,s). The equation should not contain . b Graphically illustrate the impact of an increase in s in a p-q diagram. c Graphically illustrate why the monopolist underprovides quality. d Now assume the utility function is ui=i+(1i)sp. Repeat part b and c

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