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Answer all of the following questions. Be sure to read the questions thoroughly and answer the question completely. Use graphs where appropriate but be sure

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Answer all of the following questions. Be sure to read the questions thoroughly and answer the question completely. Use graphs where appropriate but be sure to explain and correctly label all graphs. Consider the following demand and marginal revenue functions for product: P D- _ Q 100 20 MR = 2,000 400.. Assume that the product can be produced at a constant marginal cost of $100 per unit which is also equal to average total cost. 1. Calculate the competitive price and output. Show graphically. 2. Calculate the consumer surplus and producer surplus resulting from the competitive outcome. Show graphically. Suppose now that you patent the product. 3. Calculate the single price monopolistic price and output. Show graphically. 4. Calculate the consumer surplus and producer surplus resulting from the monopolistic outcome. Show graphically. 5. Calculate the single price monopolistic prots. Show graphically. 6. Calculate the amount of the deadweight loss resulting from the monopolistic outcome. Show graphically. Extra Credit Suppose now that you want to try to increase your prots even more, so you decide to institute a two- part tariff pricing scheme. The pricing scheme consists of the purchase price of the product and a per unit fee each time you use the product. 7. What is the prot maximizing purchase price ofthe product? 8. What is the prot maximizing price per unit (aka use fee)? 9. Calculate the prots resulting from the two-part tariff pricing policy. 10. Calculate the amount of the dead weight loss resulting from the two-part tariff. Suppose now, that you can separate your market into two segments, with the following demand and marginal revenue functions: Market Segment #1: q? = 100 % MR1 =3,000 60q1 Market Segment #2: q; : 100 % MR2 : 1,500 3qu 11. lfyou choose to engage in price discrimination, calculate the prot maximizing price and output in each market. 12. Calculate the combined prots (i.e., from both markets) resulting from the price discriminating outcome. 13. Compare the prots resulting from the single price monopoly outcome, the two-part tariff and the third-degree price discriminating outcome. Which results in the greatest prot

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