the Celestial Communications is the only cellular phone provider in the city and sells its service to corporate users and regular users. The total cost function of the monopolist is given by:
The two groups have different demands for cellular phone service and their demands are given by
- What quantity should the monopolist sell to the corporate users and at what price and What quantity should the monopolist sell to the regular users and at what price?
- What is the total amount of profit the monopolist will earn from the two markets?