A monopolist with demand curve p = 1-q produces with a cost technology C(q) = 0.2q (constant marginal cost). Assume each consumer buys only one unit of the product (as in the class example). Solve its profit-maximization problem when the monopolist can perfectly price discriminate. Fill the blanks below in such a case. The total quantity the monopolist sells at the equilibrium is ,and the profit it obtains is The total consumer surplus at the equilibrium is Consider the monopoly market in Q1. Solve the monopolist's profit- maximization problem when it cannot price discriminate at all. Fill the blanks below. When it cannot price discriminate at all, the equilibrium price is the total quantity the monopolist sells is and the profit it earns is The total consumer surplus is Consider the monopoly market in Q1 andQ2. Assume that although each consumer consumes only one unit of the product, she can buy multiple units • of the product, and resell the units she doesn't need. Solve the monopolist's profit-maximization problem in this environment, when it can perfectly price- discriminate (but it does not have to). The equilibrium price is quantity is and the profit the monopolist earns is The consumer surplus is
A monopolist with demand curve p = 1-q produces with a cost technology C(q) = 0.2q (constant marginal cost). Assume each consumer buys only one unit of the product (as in the class example). Solve its profit-maximization problem when the monopolist can perfectly price discriminate. Fill the blanks below in such a case. The total quantity the monopolist sells at the equilibrium is ,and the profit it obtains is The total consumer surplus at the equilibrium is Consider the monopoly market in Q1. Solve the monopolist's profit- maximization problem when it cannot price discriminate at all. Fill the blanks below. When it cannot price discriminate at all, the equilibrium price is the total quantity the monopolist sells is and the profit it earns is The total consumer surplus is Consider the monopoly market in Q1 andQ2. Assume that although each consumer consumes only one unit of the product, she can buy multiple units • of the product, and resell the units she doesn't need. Solve the monopolist's profit-maximization problem in this environment, when it can perfectly price- discriminate (but it does not have to). The equilibrium price is quantity is and the profit the monopolist earns is The consumer surplus is
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.1P
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![<Perfect Price Discrimination>
A monopolist with demand curve p= 1 - q produces with a cost
technology C(q) = 0.2q (constant marginal cost). Assume each consumer
buys only one unit of the product (as in the class example).
Solve its profit-maximization problem when the monopolist can perfectly
price discriminate. Fill the blanks below in such a case.
The total quantity the monopolist sells at the equilibrium is
and the
profit it obtains is
The total consumer surplus at the equilibrium is
Q2.
Consider the monopoly market in Q1. Solve the monopolist's profit-
maximization problem when it cannot price discriminate at all. Fill the blanks
below.
When it cannot price discriminate at all, the equilibrium price is
the
total quantity the monopolist sells is
,and the profit it earns is
The total consumer surplus is
Consider the monopoly market in Q1 andQ2. Assume that although each
C3 consumer consumes only one unit of the product, she can buy multiple units
• of the product, and resell the units she doesn't need. Solve the monopolist's
profit-maximization problem in this environment, when it can perfectly price-
discriminate (but it does not have to).
The equilibrium price is
quantity is
and the profit the
monopolist earns is
The consumer surplus is](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6278709b-5281-413c-9d58-c3eeb7101478%2F89f31012-f471-4a77-8c4b-4cb50ca20444%2F84cht2b_processed.jpeg&w=3840&q=75)
Transcribed Image Text:<Perfect Price Discrimination>
A monopolist with demand curve p= 1 - q produces with a cost
technology C(q) = 0.2q (constant marginal cost). Assume each consumer
buys only one unit of the product (as in the class example).
Solve its profit-maximization problem when the monopolist can perfectly
price discriminate. Fill the blanks below in such a case.
The total quantity the monopolist sells at the equilibrium is
and the
profit it obtains is
The total consumer surplus at the equilibrium is
Q2.
Consider the monopoly market in Q1. Solve the monopolist's profit-
maximization problem when it cannot price discriminate at all. Fill the blanks
below.
When it cannot price discriminate at all, the equilibrium price is
the
total quantity the monopolist sells is
,and the profit it earns is
The total consumer surplus is
Consider the monopoly market in Q1 andQ2. Assume that although each
C3 consumer consumes only one unit of the product, she can buy multiple units
• of the product, and resell the units she doesn't need. Solve the monopolist's
profit-maximization problem in this environment, when it can perfectly price-
discriminate (but it does not have to).
The equilibrium price is
quantity is
and the profit the
monopolist earns is
The consumer surplus is
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