Consider a monopolist who faces the following market demand curve: Q = 100 – 0.5 p, 0 ≤ p ≤ 200 = 0, p > 200. The monopolist’s cost function is TC(Q) = 20 Q + Q2.
-What is the profit maximized uniform price?
-Calculate the profit at the price obtained above.
-What would be the profit maximized level of output if the firm price discriminates in the first degree?