There is a monopolist and two groups of consumers, students andgeneral consumers. The total demand of students is 𝐷1(𝑝) = 10−𝑝, while the total demand of general (non-student)consumers is 𝐷2(𝑝) = 40 − 2𝑝. The monopolist’s (short-run) variable cost function is 𝑐(𝑞) = 2𝑞. Throughout thisquestion, the monopolist uses linear pricing

s] (Third-degree price discrimination) There is a monopolist and two groups of consumers, students andgeneral consumers. The total demand of students is 𝐷1(𝑝) = 10−𝑝, while the total demand of general (non-student)consumers is 𝐷2(𝑝) = 40 − 2𝑝. The monopolist’s (short-run) variable cost function is 𝑐(𝑞) = 2𝑞. Throughout thisquestion, the monopolist uses linear pricing.(a) [5 marks] Discuss reasons why the demands of the two groups may be different. For the purpose of thisquestion, assume that every consumer has unit demand. (Limited

Given a monopolist who has identified two submarkets or group of buyers for its product with demand schedule: 𝐺𝑟𝑜𝑢𝑝 1: 𝑄1𝐷=40 − 5𝑃1 𝑎𝑛𝑑 𝐺𝑟𝑜𝑢𝑝 2: 𝑄2𝐷=60 −10𝑃2 The short run total cost curve of the monopolist is: 𝑆𝑇𝐶: 𝐶(𝑄)= 0.25𝑄2+120, where 𝑄 = 𝑄1+ 𝑄2, with 𝑄1 𝑎𝑛𝑑 𝑄2 as quantities in submarkets 1 and 2 respectively. 𝑃1 𝑎𝑛𝑑 𝑃2 are the units prices in (rands) in submarkets 1 and 2 Find: a) The profit maximizing outputs. (9) b) The profit maximizing price for each submarket. (4) c) The maximum total revenue and total cost for the submarkets (4) d) The monopolist’s profit for the submarkets (2) e) Verify that this combination gives the maximum profit. (6) ..

Suppose a monopolist faces a per period demand curve having the form: P = 11 – 0.005Q. Her total cost function is given by: TC = 0.5Q. This monopolist is able to practice second degree price discrimination, by selling off batches of her product along the demand curve. She chooses two prices: $9 per unit and $5 per unit. What is the consumer surplus in each period? Group of answer choicesConsumer Surplus = $4,000.Consumer Surplus = $2,400.Consumer Surplus = $1,600.Consumer Surplus = $2,800.Consumer Surplus = $2,000.

Suppose a monopolist faces a market demand curve of the form: P = 122 – 0.2Q. This monopolist has a total cost curve given by: TC = 2Q. If the government were to regulate this monopolist and require them to charge a price equal to average cost, this price would be equal to $_____, and the monopolist would make a profit of $______.Group of answer choices2; 36,000.0; 0.2; 0.61; 17,995.62; 18,000.

A monopolist has variable costs of VC = q2 and faces a demand curve of P = 24 – q, where P is price and q the quantity sold. If the monopolist engages in first-degree price discrimination, the resulting deadweight loss is?