entical and aarket demand given by p= 100-q. The monopoly's cost function is C(q) = . (a) Suppose the monopolist cannot discriminate prices and must set a uniform price. Compute price and quantity set by the monopolist. Compute the profit of the monopoly. (b) Suppose now that the monopoly can set a two-part tariff Find the optimal two-part tariff. Compute the profit of the monopolist.
entical and aarket demand given by p= 100-q. The monopoly's cost function is C(q) = . (a) Suppose the monopolist cannot discriminate prices and must set a uniform price. Compute price and quantity set by the monopolist. Compute the profit of the monopoly. (b) Suppose now that the monopoly can set a two-part tariff Find the optimal two-part tariff. Compute the profit of the monopolist.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Suppose all consumers are identical and
market demand given by p = 100 – q. The monopoly's cost function is C(9) = g.
(a) Suppose the monopolist cannot discriminate prices and must set a uniform price. Compute
price and quantity set by the monopolist. Compute the profit of the monopoly.
(b) Suppose now that the monopoly can set a two-part tariff. Find the optimal two-part tariff.
Compute the profit of the monopolist.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F93b88cb7-c89d-400f-8e31-f9ad424ea458%2F18f2db4b-df60-49b6-860c-f9a40db4dc8b%2F2ykeqg_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Suppose all consumers are identical and
market demand given by p = 100 – q. The monopoly's cost function is C(9) = g.
(a) Suppose the monopolist cannot discriminate prices and must set a uniform price. Compute
price and quantity set by the monopolist. Compute the profit of the monopoly.
(b) Suppose now that the monopoly can set a two-part tariff. Find the optimal two-part tariff.
Compute the profit of the monopolist.
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