I need answers for this Please don\'t just get the answers from other website...

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I need answers for this

Please don't just get the answers from other website...

Thank you

Suppose that a monopolist faces two types of customers, Big and Little. Their demand curves are as follows: Qs- 200-P and Qi -100-P, where price is price 1. If marginal cost is 10, calculate the profit-maximizing price. 2. Leaving the monopoly price as an option always available to either Big or Little, construct an optional two part tariff that will lead to a win-win outcome for all three agents, the firm and the two customer types.

Explanation / Answer

For profit maximising firms MC = MR

MR(Big) = MR(Little)= MC

For customer Big profit maximising quantiy is given by,

TR = (200-P)P = 200P-P2

MR = 200-2P

Now,

200-2P = 10

2P = 190

P = 95

For customer Little profit maximising price is given by,

TR = (100-P)P = 100P-P2

MR= 100-2P

100-2P = 10

2P = 90

P = 45

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