Monopoly doubt: ISI 2006

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Monopoly doubt: ISI 2006

SINGHAM
 Suppose a monopolist faces two types of consumers. In type I there is
only one person whose demand for the product is given by :  P Q I − =100 ,
where P represents price of the good. In type II there are n persons, each
of whom has a demand for one unit of the good and each of them wants to
pay a maximum of Rs. 5 for one unit. Monopolist cannot price
discriminate between the two types. Assume that the cost of production for
the good is zero. Does the equilibrium price depend on n ? Give reasons
for your answer.

I get this answer : Up to n=499, his price should be 50, and after that, i.e., n>499, he should charge 5.

PLEASE VERIFY THIS!!
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Re: Monopoly doubt: ISI 2006

Dreyfus
I think it should be n>500 so that profit from type 2 customers will exceed from 2500 !
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Re: Monopoly doubt: ISI 2006

SINGHAM
@Vaibhav, yaar, @ n=500, both the policies are ! So, anyone can be chosen :-)
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Re: Monopoly doubt: ISI 2006

Dreyfus
That's y I wrote n>500
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Re: Monopoly doubt: ISI 2006

SINGHAM