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Calculate the optimal monopoly price and quantity

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Reference no: EM132812873

A monopolist produces golf balls. Assume that the inverse demand for golf balls is P=200-2Q and its MC=10.

a) Calculate the optimal monopoly price and quantity when the monopolist charges a uniform market price.

b) Calculate the optimal prices (per unit price and fixed price) and quantity, if the monopolist decides to charge a two-part tariff.

c) Suppose the monopolist wants to offer a block tariff, and decides to charge for the first block a price of p1=160 and Q1=20. What is the optimal price and quantity for the second block?

Reference no: EM132812873

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