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A perfectly discriminating monopoly has 2 potential consumers: consumer 1 and consumer 2.Consumer 1's demand curve is q1=12-2p and q2=12-p.The monopoly's cost function is c(Q)=3Q^2/4.What
A perfectly discriminating monopoly has 2 potential consumers: consumer 1 and consumer 2.Consumer 1's demand curve is q1=12-2p and q2=12-p.The monopoly's cost function is c(Q)=3Q^2/4.What will be the quantities q1,q2the consumers will consume?
a. None of the others.
b. q1=0;q2=3
c. q1=4;q2=0
d. q1=0;q2=4
e. q1=1;q2=2
Please explain why.
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