a demand given by Qs = 4000 - 100P. The marginal cost of one more alteration is constant and al to zero. (a) (b) What is the value of each demand's elasticity at the optimal price level? (c) What is the total consumer surplus (for both groups)? (d) Suppose that a regulation prohibits price discrimination. What is the optimal (uniform) price when the markets are combined? How much does the regulation cost the tailor in terms of forgone profits? (e) What happens to consumer surplus? Suppose that the tailor can charge different prices to each type of customer. What are the optimal prices? What is the total profit?

a demand given by Qs = 4000 - 100P. The marginal cost of one more alteration is constant and al to zero. (a) (b) What is the value of each demand's elasticity at the optimal price level? (c) What is the total consumer surplus (for both groups)? (d) Suppose that a regulation prohibits price discrimination. What is the optimal (uniform) price when the markets are combined? How much does the regulation cost the tailor in terms of forgone profits? (e) What happens to consumer surplus? Suppose that the tailor can charge different prices to each type of customer. What are the optimal prices? What is the total profit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A monopoly has the demand schedule p = 210 − 0.2q and the marginal cost schedule MC = 20 + 0.8q (a) If it can practise first-degree price discrimination how much should it sell? (b) If it can practise second-degree price discrimination and it has already made the decision to sell the first 100 units at a price of £190, what price should it charge for the rest of the units it sells?
1. The marginal price ?? ?? at ? units of demand per week is proportional to the price p. There is no weekly demand at a price of $1000 per unit, that is ?(0) = 1000. There is a weekly demand of 10 units at price of $367.88 per unit, ?(10) = 367.88. (A) Find the price-demand equation. (B) At a demand of 20 units per week, what is the price? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
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