Given: Demand; P=20 - 0.005 Q and monopolist's costs: TC = 12,000 + 5 Q MC =5 a) Assume that in (two) block pricing, the first block sells at a price of $15. Find the second block P and Q, and therefore revenue, cost and profit. b)  What is consumer's surplus in part a)?

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A: Q=423-2P2P=423-QP=423-Q2P=211.5-Q2Now,TR=P×QTR=(211.5-Q2)QTR=211.5Q-Q22Thus,MR=∂TR∂QMR=211.5-Q

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