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6(20 pts) You are a monopolist facing inverse demand for your product given by P-120-20 and you have constant marginal cost given by MC-30 (a) (10 pts) Assume you can charge 2 different prices based on quantity purchased. What are the producers suplus-maximizing levels of these prices? (b) (10 pts) Show graphically how much more producers surplus vou make by setting 2 prices instead of 1 in this market

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Answer #1

Given that, you are a rroopol따 Racing ou Pioduct iver inven se deman d b0γ Maraina) Cost CMc)3D a letthe podue suplus maimi zing pnice quan com binatibn be Te pinst Pa门 mot in izes monopoly Profit The monopaly demand curve P 0 -4 210 uilibrium: MR= MC The se cond matimizer esidua demand pPyo atter monopolist Sold sa. uni The esidual demand 6o- 22.5

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