Price Discrimination

There are two types of consumers with inverse demands

P1= 20−2Q1 and P2= 16−2Q2. Assume for now that N1=N2 = 1. There is a monopolist providing the good with a marginal cost of 4.

1.1

What is the Uniform price that a monopolist would charge?

1.2

What would be the prices that a monopolist would charge if it could price discriminate (3rd degree)?

1.3

What would the prices be under 2-part pricing? (please include the membership fee and the unit price)

1.4

What would be the optimal bundles if the monopolist could not distinguish between consumer types

Write 4 page essay on the topic Fact pattern.

The law is very clear. you must never purport to use the image of any celebrity in preparing another artistic work unless a permission is total granted. However, the US Copyright law does not specify on the legality of the use of names of celebrities. In this case, Artist can just flash the names of the names of famous musicians.

In this scenario, Artist and Chet verbally agree on conditions they considered favourable to both of them. Artist agrees to pay Chet $150 per day plus gas, breakfast, lunch and cat food. On the other hand Chet is willing to drive Artist anywhere within a radius of 200 miles for duration of 10 days. Definitely this is an oral agreement. Oral contracts are valid and are enforceable by a court of law as long as there is sufficient evidence to justify one`s claim (Oversight 1-10). By the fact that Chet and Artist shook hands on their agreement it remains a valid contract. After 3 days something happens and Chet has to stop offering his services to Artist. It is notable that Chet, the driver has partially fulfilled his promise in the terms of verbal agreement. It is therefore unlawful for Artist to fail to pay Chet for the three days of the service. Since Artist knew very well that he had no money and went ahead to give Chet a false promise, that forms a crime under Statute of Frauds if he fails to honour the promise.

It is notable that during the agreement, Artist agreed to be driven together with two pet cats. Detour and Frolic owned by the taxi driver. Arguably, this can be justified by the fact that Artist consciously agrees to pay $150 per day plus fuel, breakfast, lunch and cat food. In the last part of the previous statement basically Artist agrees to pay for the food of the two cats. Naturally that would mean that he is willing to travel with them in the same car. However, it should be noted that Artist is allergic to pest such as cats. Contrary, there is no legal backing for