A software developer has received a patent protection for a software; he has a cost function of c(q)= 2q^2. The developer is facing 2 types of consumers, Firms (F) who have a demand function qF(p) = max{0; 10- p) and Students (S) who have a demand function qS(p)= max{0,5-p}. Calculate the equilibrium when he can discriminate prices between consumers, and also calculate the equilibrium when he can't discriminate %3D between consumers.
A software developer has received a patent protection for a software; he has a cost function of c(q)= 2q^2. The developer is facing 2 types of consumers, Firms (F) who have a demand function qF(p) = max{0; 10- p) and Students (S) who have a demand function qS(p)= max{0,5-p}. Calculate the equilibrium when he can discriminate prices between consumers, and also calculate the equilibrium when he can't discriminate %3D between consumers.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![A software developer has received a patent
protection for a software; he has a cost
function of c(q)= 2q^2. The developer is
facing 2 types of consumers, Firms (F) who
have a demand function qF(p) = max{0; 10-
p} and Students (S) who have a demand
function qS(p)= max{0,5-p}. Calculate the
equilibrium when he can discriminate prices
between consumers, and also calculate the
equilibrium when he can't discriminate
between consumers.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1cb7fa45-c323-4ada-91e0-b68bf6c33d1d%2F4b3a1ff7-15c7-4ea9-bcd6-3a7897f140d1%2Fzfsiife_processed.jpeg&w=3840&q=75)
Transcribed Image Text:A software developer has received a patent
protection for a software; he has a cost
function of c(q)= 2q^2. The developer is
facing 2 types of consumers, Firms (F) who
have a demand function qF(p) = max{0; 10-
p} and Students (S) who have a demand
function qS(p)= max{0,5-p}. Calculate the
equilibrium when he can discriminate prices
between consumers, and also calculate the
equilibrium when he can't discriminate
between consumers.
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