A monopolist has two types of customers. There are 100 of Type A who will each pay up to $10 for a single unit of the good, and 50 Type B, who will each pay up to $8. Neither is willing to purchase additional units at any price. If it must charge a uniform price, find that price.
A. Assume that spending $80 on advertising will attract 100 more type B customers. Should the monopolist advertise? If so, what will happen to price?