1. Suppose Dropbox can price discriminate between the two groups. Calculate the amount of storage it sells to each group, the two prices and total profits. 2. Calculate consumer and producer surplus under price discrimination 3. Suppose the government forbids price discrimination. Calculate the optimal unique price the monopolist would charge and her profits. Would the monopolist choose to serve both businesses and individuals?

1. Suppose Dropbox can price discriminate between the two groups. Calculate the amount of storage it sells to each group, the two prices and total profits. 2. Calculate consumer and producer surplus under price discrimination 3. Suppose the government forbids price discrimination. Calculate the optimal unique price the monopolist would charge and her profits. Would the monopolist choose to serve both businesses and individuals?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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