Problem
A firm serving a market operates with total variable cost TVC= Q2. The corresponding marginal cost is MC= 2Q. The firm faces a market demand represented by P = 40 - 3Q.
(a) Suppose the firm sets the uniform price that maximizes profit. What would that price be?
(b) Suppose the firm were able to act as a perfect first degree price-discriminating monopolist. How much would the firm's profit increase compared with the uniform profit-maximizing price you found in (a)?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.