ISI 2006., Monopoly question

[Spiti]

[kangkan]

Hi..

Lets suppose he sells only to type 1 customer..than equating MR=MC, the profit maximaizing level of output is 50 and price is 50..hence profit maximizing level of profit is 2500.

Now lets suppose he services type customer..hence p=5..let the number of customer b n

he will serve them only when 5*n +95*5>= 2500
this will mean n.405..hence for n>405, p=5..for n<405 p= 50.

Regards

[The Villain]

Kangkan...i didnt get the 2 nd part...