i.(8) Assuming that Apple is maximizing short-run monopoly profit, what is its marginal revenue function? What are its profit maximizing price and quantity? ii.(5) What is Apple’s average total cost function? What is the profit at the current quantity, q*? iii.(4) What is the point elasticity of demand at the profit-maximizing level? iv.(8) Show Apple’s profit maximizing solution in a diagram. v.(5) Calculate the deadweight loss created by the monopoly.
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68. (15) The Wiz-O-Matic company sells Wizzles to two different groups (A and B). (i)In general, what conditions must hold for a firm to be able to practice the 3rddegree price discrimination? (ii)Please explainthe process by which the firm will determine how many units to sell in each market and what the price will be in each market. Use the graph below to illustrate your answer. Pa Pb P MC Da Db Dtotal MRa Qa MRb Qb MRtotal Qt