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Suppose a monopolist has cost curve C(q) = 10 + 3q + 0.1q 2 and faces demand q = 12 ? p.
(a) Find the monopolist price and quantity.
(b) Now suppose that there is another market, whose demand function is given by q = 24 ? 4p. Suppose that the monopolist can discriminate between markets, that is, charge a different price and offer a different quantity in the markets. What would happen now?
(c) Return to the situation in (a) with only one market. What would be the monopolist profit?
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