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Questions on microeconomics, provide solutions for the same. (31] points} Consider an expected prot maximizing monopolist who faces an uncertain demand. He supplies q units

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Questions on microeconomics, provide solutions for the same.

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(31] points} Consider an expected prot maximizing monopolist who faces an uncertain demand. He supplies q units of goods at zem cost and sells it at price 3 q, where H is nnlmown. [The price and the supply level can be negative] (11] Asemmhg that 3 ~ N {3:152}, compute the monopolist's uptilnal Suppl}...r q and his expected prot under the optimal supply. [h] Suppose that, through market research, the monopolist can learn about H. In particularT by investing :12, he can learn the value of a random variable 1' before charming his Suppl]? 1;, such that. H = X+Y, X ~ N [[1,]. c] and lr' ~ N[,c]. How much should the monopolist invest? [Note that the utility function of the monopolist is [H q] q 22.]

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