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The LOL Street Journal is considering ordering a new service which will send news articles to readers by email. Their market research indicates that there are two types of potential users: students and high-level executives. Let Q1 and Q2 the number of articles each group respectively requests per year. Students have an inverse demand function P1 = 80-Q1. The executives have an inverse demand function P2 = 100-Q2. The journal has a cost function C(q) = 500 + Q2, whereQ = Q1 + Q2.
1. What price does the LOL Street Journal as a monopolist charge in each market?
2. What quantity is sold in each market?
3. How much pro?t does the journal make? (Round up to the second decimal).
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