Consider the following market with a single seller (a monopolist).

Demand: P = 1600 - 3Q^d Marginal Cost: MC = 200 + 4Q^s

5.If this seller acted as a perfectively competitive firm and set P = MC, the market-clearing quantity solve would be _________ units (in other words, treat the MC curve is the seller's supply curve and find the market equilibrium quantity).

6.The equilibrium price for the situation described in Question 5 is ________ dollars.

7.Now suppose the seller executes its market power and sets its marginal revenue equal to marginal cost.The marginal revenue curve in this case is MR = 1600 - 6 Q^d.The profit maximizing level of output for this monopolist is _________?

8.The price that prevails in the market in the situation described in Question 7 is _____ dollars.

9.Suppose now the monopolist can successfully price discriminate across its customers. Specifically, high-end customers (those with high reservation prices) will be charged a retail price described in Question 8 above. Customers with lower reservation prices shop in a discount outlet.

The profit maximizing number of sales in the discount market is __________.

10.The price in the discount market is _____________ dollars.