Question

2 Monopoly (9 points) Silecro has a monopoly for silent velcro. Their demand is p 300-2Q and their cost is C(Q)- 1922 +60Q+Q2. (a) Find the profit-maximizing quantity and price. (2) (b) What fraction of the price is markup, what fraction is cost? (2) firm, HipStore?, sells indie music products: vinyl, concert tickets, merchandise etc. The bought up by a bands under contract only last for two years: Either they get really successful and major label or they vanish into obscurity. The demand in the first year is given by pi(n) - 15-/4 ut in the second year less people want to buy it from HipStore if it is already mainstream, so P2(91,9a) = 24-a/2-m/4. The cost function is given by C(gi,92)-200 + ㎷1+ d/4. (c) What are Hip Store's optimal quantities in the first and second year?1 (3 points) Consider a monopoly with the cost function C(o)225+30+/2. It faces the following inverse demand function for its product: p 90-9. (d) What is the value of the dead-weight loss due to the monopoly? Show the area on a give a value. (2) Hint: This is a question. period monopoly question. Define total profits: total revenue minus total cost across both years, then take the two first-order conditions. Show your work clearly

Please solve step by step so I can fully understand the process. Thank you !

Answer 1

Solvtoat (a mokinis 300-4

2 40 Loo Prce- Pnce

in de

Nc 구아、 60 87