MONOPOLY CASE:

Given:

Cost curve: C(q) = 10q + q^2;

Demand curve: P =110 -q;

Solve and compare the followings:

a) total q profits, b) consumer surplus c) producer surplus d) and dead weight loss compared to perfect competition for the following three cases:

1. perfect price-discriminating monopoly
2. single-price monopoly
3. quantity-discriminating monopoly by given selling its first 25 units (q1) as P = 85, and selling additional unit as (q2 -q1) = (25/3) units when P2 = (230/3).