Consider a monopoly that faces a market demand curve given as P = 100 - Q. The marginal cost of production for this monopolist is MC = 10 and the monopolist has fixed costs equal to zero. The monopolist has asked you to compare what happens if the monopolist is a single-price monopolist, a second degree price discriminating monopolist, and a perfect price discriminating monopolist. At the end of this question you will be asked to fill out a table to summarize your findings.
i) Single-price monopolist:
Suppose the monopolist charges a single-price for its product. Given this assumption, find the answers to the following questions:
a. What is the profit maximizing quantity and price for this single-price monopolist?