Question: you are a monopolist facing inverse demand for your product...
You are a monopolist facing inverse demand for your product given by P = 120 - 2Q and you have constant marginal cost given by MC = 30
A. Assume you can charge 2 different prices based on the quantity purchased. What are the producers surplus maximizing levels of these prices?
B. Show graphically how much more producer's surplus you make by setting 2 prices instead of 1 in this market.