Question: There are two questions to this problem set please answer both: 1.) A monopolist has the following cost structure: c(q) - 1.5 + 8q. The

There are two questions to this problem set please answer both:

1.)

A monopolist has the following cost structure: c(q) - 1.5 + 8q. The firm faces a demand function of q = 40p . Calculate the optimal price in this market.Suppose a monopolist is able to perfectly price discriminate. The firm has constant marginal cost equal to 17 and faces an inverse demand function of P(q) = 47 - 3q. What is the optimal output under perfect price discrimination

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LO12.3 Explain how demand is seen by a pure monopoly.

1. Explain how the long run differs from the short run in pure competition. LO11.1

2. Relate opportunity costs to why profits encourage entry into purely competitive industries and how losses encourage exit from purely competitive industries. LO11.2