Question 4 (a) Explain with examples any two sources of barrier to entry that give rise to monopoly power. (6 marks) (b) Mr Lee is a private music teacher providing one-on-one piano and violin lessons to his students. The following table shows the reservation price (i.e., the maximum price willing to pay) of his students in attending his music lesson on a weekly basis. Each student will attend only one lesson in each week. The marginal cost of teaching one music lesson for Mr Lee is constant at $295. Student Alan Lesson Piano Reservation price (S) 500 Brian Piano 490 Cathy Violin 480 David Violin 470 Eva Piano 460 Francis Violin 450 George Piano 440 Helen Violin 430 Piano 420 Ivy Jack Violin 410 Kenneth Piano 400 Lawrence Violin 390 Piano 380 Mandy Nancy Violin 370 (i) Suppose Mr Lee has enough time to teach all students and he charges one single price for both piano and violin lessons. What is his profit maximizing price and what is the amount of profit (4 marks) he can earn? (ii) Suppose Mr Lee has enough time to teach all students and he charges one single price for piano lesson and another single price for violin lesson. What is the profit maximizing price for piano lesson and for violin lesson? What is the total amount of profit that he can earn? (4 marks) (iii) Suppose Mr Lee can teach at most 9 students in a week and he charges one single price for piano lesson and another single price for violin lesson. What is the profit maximizing price for piano lesson and for violin lesson? What is the total amount of profit that he can earn? (3 marks) (iv) Suppose Mr Lee has enough time to teach all students and he charges one single price for both piano and violin lessons. However, the government requires that every music teacher has to pay a fixed license fee of $1,100 per week and this $1,100 fee is independent of the number of students that the music teacher has taught. What is his profit maximizing price and what is (3 marks) the amount of profit he can earn?