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{10-p} and Students (S) who have a demand function qS(p)= max{9-p}. Calculate the equilibrium when he can discriminate prices between consumers, and also calculate the equilibrium when he can't discriminate 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{10-p} and Students (S) who have a demand function qS(p)= max{9-p}. Calculate the equilibrium when he can discriminate prices between consumers, and also calculate the equilibrium when he can't discriminate between consumers.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter5: Supply, Demand, And Price: Applications

Section5.7: Application 7: The Price Of An Aisle Seat

Problem 2ST

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