Amonopolist sells in two states. the demand function in state 1 and 2 respectively is q1(p1)=50 – p1 and q2(p2)=90-1.5p2. the monopolist produces at a constant marginal cost of 10. if a government regulation prevents the monopolist from charging different prices in the two states, then the profit maximizing price will be p*= (hint: the monopoly serves both markets if the optimal price is below 50; assume that p* is at most 50 and solve for the monopoly that maximizes profits with the aggregate demand; confirm that the solution is below 50).

Magic realm, inc., has developed a new fantasy board game. the company sold 15,000 games last year at a selling price of $20 per game. fixed expenses associated with the game total $182,000 per year, and variable expenses are $6 per game. production of the game is entrusted to a printing contractor. variable expenses consist mostly of payments to this contractor.required: 1-a. prepare a contribution format income statement for the game last year.1-b. compute the degree of operating leverage.2. management is confident that the company can sell 58,880 games next year (an increase of 12,880 games, or 28%, over last year). given this assumption: a. what is the expected percentage increase in net operating income for next year? b. what is the expected amount of net operating income for next year? (do not prepare an income statement; use the degree of operating leverage to compute your answer.)