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Consider a monopolist selling sweets to two types of consumers (assume sweets are innitely divisible, so that the monopolist can sell any nonnegative quantity). The
Consider a monopolist selling sweets to two types of consumers (assume sweets are innitely divisible, so that the monopolist can sell any nonnegative quantity). The demand of consumers of type 1 is given by p1(q1) : 9 3q1. The demand of consumers of type 2 is given by p2(q2) : 8 7 5:12. All quantities are expressed in kilograms and prices in pounds sterling. The monopolist can produce sweets at no cost. There are equal numbers of both types of consumers. (c) Now suppose that the monopolist cannot distinguish anymore between the two consumers, but is allowed to oer xed packages. How can the monopolist achieve the highest prot (state quantities and fees for each package)? What is the monopolist's prot per consumer
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