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Question 10 A monopolist in a given market faces inverse demand function P : QC! 2 Ct. Its cost stmcture is given by C(D} = 10 Q + F, where F represents a setup cost that the rm only pays if it decides to produce and sell in this market. Solve this rm's profrt maximization problem and determine the following: Determine in which of the two cases {F = CI or F = 300} the Lemer Index is a better indicator of anti competitive behavior by the rm: {3 The rst case, because prots are higher. Ci None of these 0 The Lemer index is the same in both cases, so prots don't matter. C} The second case, because prots are lower. Question 11 True or False: Price discrimination always increases economic efciency relative to what would be achieved by a single: uniform monopoly price. C} True {3 False