Consider a monopoly operating in two markets, TC(q) = 10q, q1=50 - p1, q2=30 - p2 3.1 Determine the prices, quantities and profit under linear pricing (hint: does the monopoly sell to both segments or only to one, and if so which one) 3.2 Determine the prices, quantities and profits for a 3rd degree discrimination 3.3 Assume that the monopoly is able to identify both types of customers. Determine the equilibrium profit for binomial pricing, Ti(qi) = Ai + pqi

Consider a monopoly operating in two markets, TC(q) = 10q, q1=50 - p1, q2=30 - p2 3.1 Determine the prices, quantities and profit under linear pricing (hint: does the monopoly sell to both segments or only to one, and if so which one) 3.2 Determine the prices, quantities and profits for a 3rd degree discrimination 3.3 Assume that the monopoly is able to identify both types of customers. Determine the equilibrium profit for binomial pricing, Ti(qi) = Ai + pqi

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.9P

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Give typed explanation
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