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 1st degree price discrimination, what quantity maximizes profit? What is the maximum profit?
Deliverables: Word Document