Explain the attachment

B. A monopolist will construct a single plant to serve two spatially separated markets in which she can charge different prices without fear of competition or resale between markets. The markets are 40miles apart are connected by a highway. The monopolist may locate her plant at either of the markets or at some point along the highway. Let zand (40-z) be the distances of her plant from markets 1 and 2 respectively. The monopolist's demand and production cost functions are not affected by her location. P, = 100-2q, p2 = 120 -392 C =80(91 +92) -(91 +92) Determine optimal values for 9.9, p.p, andz. If the monopolist transport costs are T - 0.4zq, +0.5(40 - 2)q2 . [10marks]\f1. A Long futures hedge should be used. As the investor is expecting that there might be a rise in the prices in the future, so by taking a long position in futures, he can lock his price and protect himself against any price rise 2. The contract size of silver (Futures market for silver = COMEX) is Silver 5,000-oz. As per this, the number of contracts = 2000000 / 5000 = 400 3. Please provide more information on this. 4. Spot and future prices = 11 per Oz Futures price = Spot Price * [1 +/f * (x/365) - d]) If all the information is provided then futures price can be detrmined wit the given formula Rf = Risk free rate * = number of days to expiry d= dividend3. Michelle maximizes utility by setting MRS=1+r as she is planning over a two-year period. She earns $80,000 this year and $100,000 next year. The marginal rate of substitution (MRS) of MRS=4C1\\CO. The interest rate is 2%. 3a. Write down the two-period budget constraint in terms of Co and C1 (the two-period budget constraint must only have numbers, C0 and 0.). 3b. Calculate how much is consumed in the first year (Co). 3c. Calculate savings and explain your answer. Showr how to use savings and year 2 earnings to determine his year two consumption (C1)