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Question: A monopoly has the following total cost function: C = 120 + 10Q.
a. Determine the monopolist's output and price, assuming it cannot price discriminate. What is the total profit earned by the monopolist?
b. What would its total profit be if the monopolist were to produce the efficient output, but could not price discriminate.
c. How would your answer to b. change if
(i) the monopolist could charge a price of 60 for the first block of its output, and a price of 50 for the second block, and
(ii) if it could discriminate perfectly.
There is no demand function for this problem.
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