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Advanced Semiconductor Materials Lithography (ASML) is a monopolist in extreme ultraviolet (EUV) l ...
Advanced Semiconductor Materials Lithography (ASML) is a monopolist in extreme ultraviolet (EUV) lithography systems used to produce computer chips. Its marginal cost of production \( c \) is 1 billion per unit. Small chip makers demand 4 units and are willing to pay 10 billion each, whereas large chip makers want to buy 6 units at a maximum 20 billion each. ASML also produces a UV system, a slower version of the EUV system, at a marginal cost \( c^{\prime}=1.5 \). The two types of chip makers are willing to pay 12 and 8 billion for one UV system, respectively. Selling EUV units at 20 Selling UV units at 10 Selling EUV units at 12 and \( U V \) units at 8 Selling EUV units at 16 and UV units at 8