Price Discrimination
There are two types of consumers with inverse demands
P1= 20−2Q1 and P2= 16−2Q2. Assume for now that N1=N2 = 1. There is a monopolist providing the good with a marginal cost of 4.
1.1
What is the Uniform price that a monopolist would charge?
1.2
What would be the prices that a monopolist would charge if it could price discriminate (3rd degree)?
1.3
What would the prices be under 2-part pricing? (please include the membership fee and the unit price)
1.4
What would be the optimal bundles if the monopolist could not distinguish between consumer types
