A market is made up of two consumers. The first has a demand P(1) = 1200 – 3q and the other has demand P(2) = 1200 – 6q. There is one firm in the market acting like a monopolist with costs = Q^2 + 90,000
Assume the firm can perfectly price discriminate on a continuous level. Show that q(1) = 200, q(2) = 100, and that the firm’s profit = 90,000