Consider the case where there is a consumer in the market with a demand of P = 60 - 2q. A monopolist has variable costs of VC-2q² where Pis price and q the quantity sold. The monopolist engages in first degree price discrimination using a two-part tariff, what is the fixed fee (F) and per-unit fee charged (p)? OF 200, p 20 m OF=150, p = 20 OF=100, p = 40 OF=400, p = 40

Consider the case where there is a consumer in the market with a demand of P = 60 - 2q. A monopolist has variable costs of VC-2q² where Pis price and q the quantity sold. The monopolist engages in first degree price discrimination using a two-part tariff, what is the fixed fee (F) and per-unit fee charged (p)? OF 200, p 20 m OF=150, p = 20 OF=100, p = 40 OF=400, p = 40

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter28: Antitrust And Regulation

Section: Chapter Questions

Problem 8E

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Exercise A.6 A monopolist facing the demand curve Q = 42 – 0.6P operates with constant average and marginal costs equal to 20. a) Calculate the quantity, price and profit obtained by the monopolist. Represent graphically. (b) What quantity, what price and what benefit will you get if you can apply first-degree price discrimination? Calculate the consumer surplus and represent graphically. c) The monopolist warns that he can separate consumers into two distinct groups with demands Q1 = 12 - 0.1P1 and Q2 = 30 - 0.5P2. Calculate the quantities, the prices you will set in each market, and the profit you will make. Represent graphically.
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