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# firm's profits

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I'd like some help with this problem to make sure I'm heading in the right direction. This is from Baye 6th edition.
You are the manager of a firm that produces products X and Y at zero cost. You know that different types of consumers value your two products differently, but you are unable to identify these consumers individually at the time of the sale. In particular, you know there are three types of consumers (1,000 of each type) with the following valuations for the two products:

Consumer type Product x Product Y
1 \$60 \$50
2 50 125
3 25 140

A.What are your firm's profits if you charge \$25 for product X and \$50 for product Y?
B.What are your profits if you charge \$60 for product x and \$140 for product y?
C.What are your profits if you charge \$110 for a bundle containing one unit of product X and one unit of Product Y?
D.What are your firm's profits if you charge \$175 for a bundle containing one unit of X and one unit of Y, but also sell the products individually at a price of \$60 for product x and \$140 for product Y?

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#### Solution Preview

Consumer type Product x Product Y
1 \$60 \$50
2 50 125
3 25 140

Assumption is made that when your price < valuation price for a customer category, all customers will buy the product as they percieve the value to be more than price paid

A.What ...

\$2.19
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## Overview of conditions for a monopolistic market

A) What are the conditions for a perfectly competitive market?
b) What are the conditions for a monopolistic market?
c) What are the conditions for a monopolistic competitive market?
d) What are the conditions for an oligopolistic market?
e) How would you explain the differences among these market structures?

Identify which market structure your organization competes in and why you think so.

F) What are some real-life examples of monopolistically competitive, oligopoly, and monopoly markets?
Please answer these questions in your own words and five one example of each.
give the exact reference location and page if from a text or website.
Thank you and have a bless day

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