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Suppose a monopolist has cost curve C(q) = 10 + 3q + 0.1q 2 and faces demand q = 12 ? p.
(a) Find the monopolist price and quantity.
(b) Now suppose that there is another market, whose demand function is given by q = 24 ? 4p. Suppose that the monopolist can discriminate between markets, that is, charge a different price and offer a different quantity in the markets. What would happen now?
(c) Return to the situation in (a) with only one market. What would be the monopolist profit?
Assume that during the last month of the tenth year of ownership, the property in Problem 2 is sold for 1,500,000. Assume also that the seller incurs transaction costs equalling 6 % of the sales price.
In your paper, write your first-person account of how human interactions in your community have been realized.
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The law of demand states that other things equal
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