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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

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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
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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