Bonus: A monopolist sells output at zero cost to two types of consumers, H and L, whose inverse demand curves are given by Ph=45-5q and pl=30-5q. Derive and discuss the optimal second-degree price discriminating equilibrium. And calculate the consumer surplus for high demanded package only! Note that the monopolist cannot identify individual types, but he knows that there are two types exist.

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.9P
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Bonus: A monopolist sells output at zero cost to two types of consumers, H and L, whose
inverse demand curves are given by Ph=45-5q and pl=30-5q. Derive and discuss the optimal
second-degree price discriminating equilibrium. And calculate the consumer surplus for high demanded package only!


Note that the monopolist cannot identify individual types, but he knows that there are two types exist.

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