Q1 the husband of miss young is a monopolist with constant

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Q1. The husband of Miss Young is a monopolist with constant marginal costs of $50 that can sell to three groups of potential customers including demands Q1=800-0.2p, Q2=400-p and Q3=700-0.4p respectively. Find out the optimal price-quantity if the firm is not able to price discriminate.

Q2. Patents are granted for 20 years in Australia, but pharmaceutical companies can't use their patent-guaranteed monopoly powers for anywhere near this long because it take several years to acquire approval of drugs. Should the lie of drug patents be extended to 20 years after the approval? Illustrate what would be the costs and benefits of this extension?

Reference no: EM13355163

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