1. If a monopoly faces an inverse demand curve of p=90-Q, has a constant marginal and average cost of 30, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single-price monopoly?

2. A profit-maximizing monopoly produces a good with constant marginal cost, MC=20, that it sells in two countries. The inverse linear demand curve is p1=60-Q1 in Country 1 and p2=602Q2 in Country 2. What is the equilibrium price and quantity in each country if resale between the countries is not possible? Does the monopoly price discriminate? Why or why not?

3. A monopoly sells its good in the US and Japanese markets. The American inverse demand function is pA = 100 - QA, and the Japanese inverse demand function is pJ = 80 - 2QJ, where both prices, pA and pJ, are measured in dollars. The firm's marginal costs of production is m=20 in both countries. If the firm can prevent resale, what price will it charge in both markets? (Hint: The monopoly determines its optimal (monopoly) price in each country separately because customers cannot resell the good.) Verify the relationship between profit-maximizing price and the elasticity of demand in both markets.

4. Three consumers, Jamil, Kim, and Lim, are in the market for two goods, dates and eggs. Their willingness to pay for dates and eggs is given in the table below: