A monopoly sells in a market where p 12 - 006q and has the

Question

Question: 1. A monopoly sells in a market where p = 12 - 0.06q and has the marginal cost schedule MC = 3 + 0.04q

If it can operate second-degree price discrimination, what price should it sell the remaining units for if it has already been decided to sell the first 50 units for a price of £9?

2. A price-discriminating monopoly sells in two markets whose demand schedules are

q₁ = 120 - 6p₁     q₂ = 110 - 8p₂

If its marginal cost function is MC = 2.26+0.02q calculate the profit-maximizing price and sales levels for each market.