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Suppose a monopolist’s costs are described by the function C = 200 + 2Q2, and it faces a demand curve of Q = 240 – p.
1. If it cannot price discriminate, what are the profit-maximizing price and quantity? What are profits?
2. If the monopolist uses block pricing by setting an intermediate price, but cannot charge more than two different prices in total, what would be the best prices to choose? How does the use of an intermediate price change profits and consumer surplus compared to the single price result?
q.consider two goods that are perfect complements. for instance car frames and tires. an individual likes owning cars
You are the manager of a monopoly, and your demand and cost functions are given by P= 200 - 2Q and C(Q)= 2000 + 3Q^2, respectively. what price-quantity combination maximizes your frm's profits?
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