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1. Suppose there are two types of consumers of Trojan condoms. Type 1 has a dema

ID: 1177078 • Letter: 1

Question

1. Suppose there are two types of consumers of Trojan condoms. Type 1 has a demand of P=100-Q1 and

type 2 has P=3-Q2. As a monopolist Trojan has a TC=0. Trojan can offer a small pack of their product

and a large pack. The consumer can only buy at most one pack either small or large.

(a) Suppose there are only one individual of each type. How many condoms should Trojan offer in the

small pack and how many should they offer in the large pack. In addition what are the prices of the

packs.

(b) Suppose that there are three individuals of type 1 and an unknown number of type 2 individuals.

What is the minimum number of individuals from type 2 will it take for Trojan to offer 2 condoms in the

small pack.


Please help! thanks

Explanation / Answer

1. considering the given conditions,

i think large packs should have 12 in each while the small pack should go for 5.

minimum number of costomers should be 1

as P=3-Q2

P=1 as q2=2

answer!