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please give me a detialed explanation A software developer has received patent protection for Software 1 and Software 2 A software developer has received patent
please give me a detialed explanation
A software developer has received patent protection for "Software 1" and "Software 2", so he can act as a monopolist in the market for these two pieces of software, and marginal costs are zero for both. She is facing two types of consumers. Type A consumers are willing to pay $30 for Software 1, and $40 for Software 2. Type B consumers are willing to pay $20 for Software 1 and $30 for Software 2. Assume that there are 100 consumers of Type A and 150 consumers of Type B. a) Assume that the monopolist prices Software 1 at $30 per unit, and Software 2 at $20 per unit. Find her profits for each type of consumer. (1 mark) Find consumers' surplus for each type of consumer (1 mark) b) Assume that the monopolist prices Software 1 at $20 per unit, and Software 2 at $30 per unit. Find her profits for each type of consumer. (0.5 mark) Find consumers' surplus for each type of consumer (0.5 mark) c) Between the two pricing schemes in part a) and b) above, which one would the monopolist choose? (0.25 marks) Which of the two schemes would Type A consumers prefer? (0.25 marks) Which of the two schemes would Type B consumers prefer? (0.5
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