Econ302-hw6-fall09 - Econ302 HomeworkAssignment6...

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Econ302 Homework Assignment 6 Due Tuesday December 8 (Questions to be graded: 1, 2, 3) Name: Section: 1.  A monopolist faces the following demand curve: where   is weekly production and   is price. The firm’s cost function is given by  where  is a fixed cost.  a. For what values of  F  can a profit-maximizing firm charging a single price earn at  least zero economic profit?
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b. For what values of  F  can a profit-maximizing firm engaging in first-degree price  discrimination can earn at least zero economic profit?
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2.  You are an executive for Super Computer, Inc. (SC), which rents out super computers.  SC receives a fixed rental payment per time period in exchange for the right to unlimited  computing at a rate of  P  cents per second.  SC has two types of potential customers of equal  number--10 businesses and 10 academic institutions.   Each business customer has the 
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Econ302-hw6-fall09 - Econ302 HomeworkAssignment6...

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