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2. A monopolist has TC[Q) = T+28Q faces customers that each have the demand P(Q) = 100 3Q. Calculate the consumer surplus that each customer
2. A monopolist has TC[Q) = T+28Q faces customers that each have the demand P(Q) = 100 3Q. Calculate the consumer surplus that each customer receives and the prots that the rm earns from each customer when the rm uses: (a) the prot-maximising uniform price. (b) a two-block tariff where they charge P = 88 in the rst block, and whatever price leads to the highest prots in the second block. (Find the best price in the second block). (c) the prot-maximizing two-block tariff
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