Consider a market with 100 consumers. In this market, consumer 's willingness to pay (wtp) to join network-A is # where [0, 1] denotes the fraction of consumers who joins the network and # is consumer 's valuation for the network with # being uniformly distributed over the interval 0 and 36, i.e., #~[0,144]. For a given price set by the monopolist firm operating network-A, consumer 's demand is # = 0 if > # and # = 1 if #. The monopolist firm operating network-A incurs a marginal cost equal to zero.

Determine the maximum price the network can charge before no consumer joins the network.

Determine the profit-maximizing price set by the monopolist firm operating the network.

Suppose a social planner operates network-A. Determine the price set by this social planner to maximize the total surplus.

Draw in Figure a total cost function that includes a fixed cost of production and that exhibits only economies of scale.