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You are a monopolist of cherts and one of many sellers of flints. Consumers buy either zero or one unit of chert; never more. Each
You are a monopolist of cherts and one of many sellers of flints. Consumers buy either zero or one unit of chert; never more. Each consumer is willing to pay $20 for a chert. Your marginal cost for a chert is $4. You also sell into the flint market, where your marginal cost, like that of all other flint sellers, is $2. In the flint market, you are one of many perfect competitors. Each consumer is willing to pay $15 for one unit of flint
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