Suppose that you own a tennis club in an isolated wealthy community and hence you act as a monopolist. The market consists of 100 (identical) tennis players each with inverse demand p = 6 q, where p is the price per hour and q is court hours. Because you have plenty of courts, the marginal cost of court time is zero.

Suppose first that you set a uniform price per hour.

Find the aggregate demand for court hours. [Hint: Recall that all players are identi-

cal (that is, they all have the same demand) and there are 100 players.]

Find the number of court hours and price that maximise your profit. Find also your maximum profit and consumer surplus.