Consider a monopolist who is faced with the market demand curve P = 10 - Q. Its total cost is given by 2Q.
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If the monopolist has to use one price, what would be profit maximizing price?
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If the monopolist can use two part tariff, what would be the entrance (to the market) fee and the price for each unit of the good?
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What is the difference between (a) and (b) from the perspectives of consumers, monopolists, and the society as a whole.