ChungNam National Univ.pf. jeon / microeconomics / Spring 2021

Problem 3. Consider a monopolist which has a cost function C(y) = 1/ 2312. There are two con- sumers in the market who have following different demands: Consumer 1: D1(p) = 50 *p Censumer 2: D2(p) = 70 p 3.1. Assume the monopolist cannnot discriminate among its consumers. Find the level of sales that maximize prot, the market price and the maximal prot. ' i - 3.2. Find each consumer's surpluses geometrically and analytically. 3.3. (Rt-degree price discrimination) Suppose that the monopolist can perfectly price discriminate among the consumers. Find the level of sales for each consumer and prot. 3.4. (BMdegree price discrimination) Find the level of sales and price for each consumer