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- = Your company has designed augmented reality sport glasses for gym goers that is a completely unique technology. You have studied the market and have determined that the demand for these glasses can be best represented by Q = 10,000 P domestically, and Q = 8,000 2P abroad. Your total costs can be summarized by C = 50,000 500. a. Given your company's monopoly on this product, what would you recommend setting for the sales price? How much product do you export vs sell domestically? b. What are the company profits under monopoly, and what is consumer surplus? c. The government finds the prices of your glasses appalling but notices the glasses are improving the overall health of the population through increased exercise. They decide to give a $500 subsidy to consumers who purchase your glasses. What does this do to equilibrium quantity and price? Show graphically and mathematically. c. You suspect other countries will copy your product and flood the market with imitations within 18 months. What will be the compet- itive price? What is consumer surplus under this regime? Consider both domestic and foreign CS. - = Your company has designed augmented reality sport glasses for gym goers that is a completely unique technology. You have studied the market and have determined that the demand for these glasses can be best represented by Q = 10,000 P domestically, and Q = 8,000 2P abroad. Your total costs can be summarized by C = 50,000 500. a. Given your company's monopoly on this product, what would you recommend setting for the sales price? How much product do you export vs sell domestically? b. What are the company profits under monopoly, and what is consumer surplus? c. The government finds the prices of your glasses appalling but notices the glasses are improving the overall health of the population through increased exercise. They decide to give a $500 subsidy to consumers who purchase your glasses. What does this do to equilibrium quantity and price? Show graphically and mathematically. c. You suspect other countries will copy your product and flood the market with imitations within 18 months. What will be the compet- itive price? What is consumer surplus under this regime? Consider both domestic and foreign CS

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