1) Assume that market demand is Qd= 1500-2P A. If marginal cost equals $250 per unit and there are no other costs, what is the profit maximizing output and price for a single-price monopolist?
2) Assume a monopolist faces two market segments. Demand in the first segment is defined by Q1d=900-3P. Demand in the second segment is defined by Q2d=700-P. The firm faces a constant marginal cost of $100 per unit and no fixed costs.
A. Assume the firm is a third-degree price discriminating monopoly and can differentiate between the two groups. Fill in the values below for segments one and two:
P1 = __________
Q1 = __________
P2 = __________
Q2 = __________
Total PS = __________