**Question: **A monopoly has 10 potential customers. Each customer will purchase 1 unit at most. The values to the customers are: 10, 9, 8, 7, 6, 5, 4, 3, 2, and 1. TC = 2.5*Q.

a. If the monopoly posts a single price, what price and quantity maximize the firm’s profit? What is the maximum profit?

b. If the monopoly engages in 1^{st} degree price discrimination, what quantity maximizes profit? What is the maximum profit?

**Solution:**The solution consists of 257 words (2 pages)

**Deliverables:**Word Document