Consider a second-degree price discriminating monopolist faces an inverse demand curve given by P(Q) = 343 - 2Q and has a cost function given by C(Q) = 1Q + 15Q. Suppose the monopolist uses two blocks...

Extracted text: Consider a second-degree price discriminating monopolist faces an inverse demand curve given by P(Q) = 343 - 2Q and has a cost function given by C(Q) = 1Q + 15Q. Suppose the monopolist uses two blocks in a declining-block pricing scheme. It charges a high price, P,, on the first Q, units (the first block) and a lower price, P2, on the next Q, -Q, units. Calculate the profit-maximizing values for P,, P2, Q1 , and Q2. Quantity sold in the first block:|. Total quantity sold: Enter the quantities rounded to two decimal places and use the rounded value in subsequent calculations, including the price calculation. Prices charged. In the first block:. In the second block: Enter the prices rounded to two decimal places. Now suppose that the economist that had estimated the cost function receives new data that suggests that a constant marginal cost function is more appropriate for this monopolist. The cost function is better estimated as C(Q) = 15Q. Calculate the profit-maximizing quantities using the updated cost function. Note: if you use the shortcut discussed in lecture, be careful not to round the competitive quantity. Quantity sold in the first block:| Total quantity sold: Enter the quantities rounded to two decimal places and use the rounded value in subsequent calculations. How did the updated cost function change the values Q, and Q, relative to your answers in the previous part of the question? Change in Q1: Enter the change in quantity rounded to two decimal places. Change in Q2: Enter the change in quantity rounded to two decimal places.