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Q1. A monopolist has demand and cost curves given by:
QD = 10,000 - 20P
TC = 1,000 + 10Q + .05Q2
a. Find the monopolist's profit-maximizing Q and price.
b. Find the monopolist's profit.
c. If this was a perfectly competitive firm, what will be the P*, Q*, and profit
Q2. Movies are distributed in a variety of forms, not just first run theatrical presentations. What other ways are movies distributed? What are the different price points? Using this information, draw a fully labeled graph of the market for movies in which the distributor of the film price discriminates.
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