Q5. Jamal is the sole producer of sushi flavor pizzas in Huntington. The market demand, though dismal, is given by = 30 . His total costs and marginal costs are given by = 10 + 2 ( ) and = 4 respectively.

(a) Write down the equation for marginal revenue based on the demand equation.

(b) Find the profit maximizing quantity for Jamal, assuming he charges the same price for all consumers.

(c) Find the corresponding profit and consumer surplus. One day innovative food expert Bam Man walks pass Jamal's stall and really liked the pizza. He suggests that Jamal can perfect discriminate the price of his pizzas in order to rip off his customers.

(d) If Jamal does this, what quantity will Jamal sell?

(e) What is the corresponding profit for Jamal, and what is the consumer surplus? Suppose Jamal gets struck by lightning one day and believes it to be the karma from ripping off his supportive customers. He now decides to sell as if he is a perfectly competitive producer.

(f) What quantity will Jamal sell now?

(g) What is the profit for Jamal? What about the consumer surplus now?

(h) Comment on the difference between the three different situations in terms of Jamal's profit and his customer's surplus. 9 Briefly, why would you observe these differences, intuitively?