The answers to Problem Set 10, Monopoly (cont.) are:

(a) Monopoly

(i) High-Sulfur Case

p = 15.56

y = 1.11

F = K = .62

(ii) Low-Sulfur Case

p = 16.36

y = .91

F = .28, K = .55

(b) Competition (Remember P = MC!)

(i) High-Sulfur Case

p = 14.29

y = 1.43

F = K = 1.02

(ii) Low-Sulfur Case

p = 15.56

y = 1.11

F = .41, K = .82