Softco is a software company that sells a patented computerprogram to businesses. It operates
with TVC = Q2
a. The firm faces a market demand represented by P = 100 %u20135Q.a. Suppose the firm sets the uniform price that maximizesprofit. What would that price
b. Suppose the firm were able to act as a perfect first degreeprice-discriminating
monopolist. Draw out the graph including the following: MRcurve, D curve, MC curve,
the lowest price they will sell at, and label producersurplus.
c. Using the same demand curve with MC = 20, graph what blocktariff would look like if I
told you the firm maximizes their block by charging a secondblock of P2 = 40 , Q2 =4 .
Label P1, P2, Q1, Q2, and the profit earned by the company. Whatis the total profit?
d. Assume that there are 2 markets for your good and you areoperating with the same
marginal cost curve as in part C, MC = 20. The f
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