Question 2 1. From the Henderson and lCluandt reading. a monopolist can split its market into two separate markets, with a. t). c. d. E. An inverse demand function of p1 = 80 u Sq] in market 1 An inverse demand function of p2 = 180 _. 20:42 in market 2 Where or is quantity produced in market i =12 Where pr is sales price in market i =12 Cost of production C = 50 + 20(q1 + gr) 2. If the monopolist could not split its market and could only sell into an single aggregate market, its inverse demand function would be p =1UU 4g 3. If the industry were perfectly competitive, its supply curve would be the marginal cost curve, or C' (q) {the first derivative of the cost curve) 4. In the table below, fill in the values for production. price, and profit under different assumptions about industry organization (some answers are already provided in Henderson 3: Quandt) Perfectly Competitive Singleuprice Price lndustry Monopolist discriminating Monopolist Total production costs EC) Profit (n)